REG - Barr(A.G.) PLC - Acquisition of Boost Drinks Holdings Limited

A G BarrAnnouncement

05/12/2022 07:00

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RNS Number : 5193I  Barr(A.G.) PLC  05 December 2022

IMMEDIATE RELEASE
 
5 December 2022

A.G. BARR p.l.c.

("A.G. BARR" or "the Group")

 

A.G. BARR produces and markets some of the UK's best known drinks brands,
including IRN-BRU, Rubicon and Funkin.

Acquisition of Boost Drinks Holdings Limited ("Boost")

A.G. BARR is pleased to announce the acquisition of Boost ("the Acquisition"),
an established branded drinks business, for an initial consideration of £20
million, on a debt free cash free basis.  The Acquisition is entirely funded
from the Group's strong net cash position.  The business is being acquired
from Boost founder Simon Gray and his wife Alison.

Strategic highlights

●  This earnings accretive acquisition further demonstrates A.G. 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 Group as a standalone
business unit

Transaction details

●    A.G. BARR has acquired 100% of Boost's issued share capital for an
initial consideration of £20 million(1), funded from the Group's cash
reserves

●    Additional consideration of up to £12 million, dependent on future
revenue and profitability performance of the Boost business over a two year
period from completion, payable in cash at the end of that period

●    The Acquisition is expected to be EPS accretive in the first full
year of ownership.  Overall Group operating margin will be diluted in the
short term however it is expected that this will recover in the medium term

●    For the year ended 31 December 2021 Boost's unaudited statutory
revenue and profit before tax were £42.1 million and £1.9 million
respectively with gross assets of £12.5 million

Roger White, Chief Executive Officer, A.G. BARR

"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 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.  With A.G.
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 & Chief Executive Officer, Boost Drinks

"I'm hugely excited to embark on the next phase of Boost's growth with A.G.
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".(
)
For more information, please contact:

 A.G. BARR  0330 390 3900                      Instinctif Partners  020 7457 2020
            Roger White, Chief Executive                            Justine Warren

            Stuart Lorimer, Finance Director                        Matthew Smallwood

 
 

1.    Adjusted for cash, debt and working capital

 

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