(Sharecast News) - Irn-Bru maker AG Barr said on Monday that it has bought drinks business Boost for up to £32m from founder Simon Gray and his wife Alison.
The payment comprises an initial £20m, and up to £12m dependent on future revenue and profitability performance of the business over a two-year period from completion.
Barr said the Boost brand, which was founded in 2001, operates mainly in the high-growth functional beverage category spanning energy, sport and protein, with a strong market position in the UK independent retail channel.
For the year to the end of December 2021, Boost's unaudited statutory revenue and pre-tax profit were £42.1m and £1.9m, respectively, with gross assets of £12.5m.
Barr said the deal is expected to be accretive to earnings per share in the first full year of ownership.
The company's chief executive officer, Roger White, 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."
Barr (A.G.) (BAG)