Arrowpoint Advisory and Rothschild & Co’s Consumer team have jointly advised AG Barr plc on its acquisition of Boost Drinks, a branded drinks business, for £20m on a debt-free, cash-free basis, funded from internal cash reserves.
The IRN-BRU maker has paid an initial £20m for Boost, which is being acquired from founder Simon Gray and wife Alison. An additional consideration of up to £12m will be payable, depending on the future revenue and profitability performance of Boost over a two-year period on completion of the deal. AG Barr, which is funding the deal from cash reserves, noted that the Boost brand operates in the high-growth functional beverage category, spanning energy, sport, and protein, and has a strong market position in the UK independent retail channel.
Simon Gray will continue to lead Boost as a standalone business unit within AG Barr.
Roger White, Chief Executive of AG Barr, said: “This 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, Founder and Chief Executive of Boost Drinks, commented: “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 A.G. BARR Group we will maintain our strong growth trajectory.”
Gavin Orde, Managing Director at Arrowpoint Advisory, concluded: “I am delighted to have had the opportunity to support Roger and the AG Barr team on this exciting acquisition which is in line with their strategic focus to grow within functional drinks. While Boost will remain as a standalone business unit, there is strong overlap of distribution channels as well as other areas where AG Barr will help Boost to continue to grow.”