Irn-Bru manufacturer AG Barr has acquired Boost, an energy drinks business, for an initial £20 million, on a debt-free cash free basis.  

An additional sum of up to £12m will be payable, dependent on future revenue and profitability performance of the Boost business over a two year period from completion, payable in cash at the end of that period

The acquisition is entirely funded from the group’s strong net cash position. Boost is being acquired from Simon Gray and his wife Alison who found Boost in 2001.

It primarily operates in the high growth functional beverage category spanning energy, sport and protein, with a strong market position in the UK independent retail channel

Cumbernauld-based Barr says significant potential exists for further growth and development of the product portfolio as well as opportunities for Boost to leverage the group’s established scale and capability.

Mr Gray will continue to lead the business, which will operate within the group as a standalone business unit.

For the year ended 31 December 2021 Boost’s unaudited statutory revenue and profit before tax were £42.1m and £1.9m respectively with gross assets of £12.5m.

Roger White, chief executive at AG Barr, said: “Today’s announcement is further evidence of our strategy to continue to grow the business through targeted acquisitions, with a particular focus on developing within high growth and functional categories.  

“Boost is one of the UK’s most recognisable functional drinks brands, and we are delighted to welcome the team into the AG Barr group. 

“The Boost portfolio offers premium taste and performance at a competitive price, with a strong market position in the UK independent retail channel. 

“With AG Barr’s proven track record of acquiring and developing attractive brands such as Rubicon and Funkin, I look forward to working with Simon and the team to ensure Boost continues to grow and develop under our ownership.”

Mr Gray said: “I’m hugely excited to embark on the next phase of Boost’s growth with AG Barr.

“I am sure that as part of the AG Barr Group we will maintain our strong growth trajectory”.

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