LONDON, UK: A.G. BARR introduced the acquisition of Boost, a longtime branded drinks business, for an preliminary consideration of £20 million, on a debt free money free basis.
The Boost brand, based in 2001, primarily operates inside the excessive growth functional beverage class spanning energy, sport and protein, with a strong market place inside the UK independent retail channel.
The acquisition is entirely funded from the Group’s strong net money position. The enterprise is being acquired from Boost founder Simon Gray and his spouse Alison.
Roger White, Chief Executive Officer, A.G. BARR said, “Today’s announcement is additional proof of our technique to proceed to develop the enterprise through focused acquisitions, with a particular focus on developing inside excessive growth and functional categories.
“Boost is one of many UK’s most recognisable functional drinks brands, and we’re delighted to welcome the team into the A.G. BARR Group. The Boost portfolio offers premium style and efficiency at a aggressive price, with a strong market place inside the UK independent retail channel. With A.G. BARR’s confirmed track record of buying and developing attractive manufacturers such as Rubicon and Funkin, I look ahead to working with Simon and the team to make sure Boost continues to develop and develop under our ownership.”
Simon Gray, Founder & Chief Executive Officer, Boost Drinks said, “I’m hugely excited to embark on the subsequent phase of Boost’s growth with A.G. BARR. Over the previous 20 years Boost has confirmed its popularity with consumers who need nice tasting, excessive performing functional drinks that offer nice worth for money and I am sure that as a half of the A.G. BARR Group we will maintain our strong growth trajectory”.
Transaction details
● A.G. BARR has acquired 100% of Boost’s issued share capital for an preliminary consideration of £20 million, funded from the Group’s money reserves
● Additional consideration of as much as £12 million, depending on future income and profitability efficiency of the Boost enterprise over a two year interval from completion, payable in money on the finish of that period
● The Acquisition is anticipated to be EPS accretive inside the primary full year of ownership. Overall Group working margin will be diluted inside the short time period however it’s anticipated that this will recover inside the medium term
● For the year ended 31 December 2021 Boost’s unaudited statutory income and revenue earlier than tax were £42.1 million and £1.9 million respectively with gross assets of £12.5 million.