REG - Barr(A.G.) PLC - Acquisition of tropical drinks brand Rio

A G BarrAnnouncement

24/10/2023 07:00

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RNS Number : 0199R  Barr(A.G.) PLC  24 October 2023

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION

 

FOR IMMEDIATE RELEASE
                                                24
October 2023

 

A.G. BARR p.l.c.

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

 

A.G. BARR is a branded multi-beverage business with a portfolio of
market-leading UK brands, including IRN-BRU, Rubicon, FUNKIN and Boost.

 

Acquisition of tropical drinks brand Rio further extends portfolio

 

A.G. BARR today announces the acquisition of the Rio soft drinks brand through
the purchase of Rio Tropical Limited.

 

Acquired from Hall and Woodhouse Limited, the independent brewer and pub
company, for a total cash consideration of £12.3m, tropical fruit brand Rio
has been marketed, sold and distributed on an exclusive licence basis by A.G.
BARR's recently acquired Boost Drinks division since 2021. The acquisition is
entirely funded from the Group's strong net cash position.

With a brand building business model, and following the Boost acquisition, we
have moved quickly to secure the long-term position of the Rio brand within
our wider portfolio. While an important contributor to the previously
announced ongoing margin rebuild programme, the transaction is not expected to
have a material impact on the Group's profits for the current financial year
ending 28 January 2024.

Roger White, CEO of AG BARR, commented: "As brand builders we are delighted to
acquire the Rio brand and secure its long-term position in our wider
portfolio. This allows us to realise the benefits of full brand ownership and
support Rio's continued growth.  This acquisition is a further positive
indication of our strategic ambitions."

Next update: January 2024 Trading Update

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

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