AG Barr, which produces and markets some of the UK's best known drinks brands, including Irn-Bru, Rubicon and Funkin, has acquired Boost, an established branded drinks business, for £20m from its founder Simon Gray and his wife Alison.
Strategic highlights
• This acquisition further demonstrates AG Barr's growth strategy focused on developing its portfolio in high growth and functional categories
• The Boost brand, founded in 2001, 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
• 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 as follows:
> expertise in innovation and new product development
> access to channel development opportunities and new routes to market; and
> operational infrastructure
• Boost operates an asset light business model outsourcing production, warehousing and logistics
• Exclusive sales and distribution partnership with the fruit drinks brand Rio
• Experienced management team, led by Boost founder Simon Gray, will continue to lead the business, operating within the AG Barr 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, CEO of 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.'
Simon Gray stated, 'I'm hugely excited to embark on the next phase of Boost's growth with AG Barr.
'Over the past 20 years Boost has proven its popularity with consumers who want great tasting, high performing functional drinks that offer great value for money and I am sure that as part of the AG Barr Group we will maintain our strong growth trajectory.'
