Acquisition launches new phase for £42m turnover drinks brand
Leeds-based branded drinks business, Boost Drinks Holdings Ltd, has been acquired for an initial consideration of £20m by AG BARR.
AG BARR produces and markets well known drinks brands such as IRN-BRU, Rubicon and Funkin. Boost, founded in 2001, mainly operates in the functional beverage category spanning energy, sport and protein, with a strong market position in the UK independent retail channel.
In addition to the initial £20m for the acquisition, the deal includes 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.
Boost is being acquired from its founder, Simon Gray, and his wife Alison. Gray, chief executive officer at Boost Drinks, said: “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.”
Roger White, chief executive officer at AG BARR, added: “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 A.G. 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.”
Today’s confirmation of the acquisition explains there is significant potential for further growth and development of Boost Drinks’ product portfolio, as well as opportunities for Boost to leverage AG BARR’s established scale and capability.
Boost’s management team, led by Gray, will continue to lead the business, operating within 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.
Boost has an exclusive sales and distribution partnership with the fruit drinks brand, Rio.
The shareholders of Boost Drinks were advised on the sale by Piper Sandler and Pinsent Masons LLP.