AG Barr has acquired soft drinks brand Boost Drinks
The energy drinks supplier has been acquired for an initial consideration of £20m, as part of AG Barr’s growth strategy focused on developing its portfolio in high growth and functional categories. There will be an additional consideration of up to £12m, dependent on future revenue and profitability performance of the Boost business over a two-year period from completion.
According to AG Barr, Boost’s “strong market position in the UK independent retail channel” as well as “significant potential for further growth and development of the product portfolio” were key reasons for the acquisition. Boost is expected to benefit from “expertise in innovation and new product development; access to channel development opportunities and new routes to market; and operational infrastructure”.
Roger White, chief executive officer at AG Barr, highlighted Boost’s presence in the independent retail sector. “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 happy 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.”
Boost founder and CEO Simon Gray will continue to lead the business as a stand-alone unit.
In a statement, Gray said: “This is a really exciting next step in Boost’s journey as AG Barr has a proven track record of acquiring and developing attractive brands. We are confident that together we will be even stronger positioned to take advantage of a number of exciting growth opportunities.
“Boost will continue to be run independently from the office in Leeds, operating as a standalone supported business unit within the AG Barr Group. The Boost team under my leadership will remain exactly the same, as will the way we do business, and the products we offer.”
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