(Alliance News) - AG Barr PLC announced on Monday that it has bought an initial 60% stake in plant-based milk firm Moma Foods, with an agreed path to full ownership within the next three years.
The Cumbernauld, Scotland-based soft drinks manufacturer did not announce the financial terms of the deal which has given it a majority stake in the London-based porridge and plant-based milk business.
AG Barr said the deal is not expected to have an impact on its profits for the financial year ending 30 January 2022.
Moma Foods was founded in 2006 and now claims to be the UK's third largest oat milk brand.
Chief Executive Roger White said: "I'm delighted that AG Barr is venturing into healthy oat-based products with such a great brand and an experienced team, led by Tom [Mercer, Moma Food chief executive]. Plant-based milk is a fast-growing category, in particular, and Moma's oat milk is a premium quality product with huge potential. This exciting investment is a positive indication of AG Barr's growth ambitions."
Shares in AG Barr were up 1.3% at 526.56 pence on Monday morning in London.
By Heather Rydings; heatherrydings@alliancenews.com
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Barr (A.G.) (BAG)