Irn-Bru owner A.G. BARR has acquired energy drinks maker Boost for an initial consideration of £20m from the brand’s founder Simon Gray and his wife Alison.
The Boost brand, established in 2001, has a strong position in the independent retail channel, with a focus on value. During 2021, it made a pre-tax profit of £1.9m on turnover of £42.1m.
The company operates an asset-light business model outsourcing production, warehousing and logistics. The existing management team, led by Gray, will continue to run the business, which will be a standalone business unit within A.G. BARR group.
A.G. BARR, which also owns the Rubicon brand, stated that it sees “significant potential” for further growth of the Boost range and development of its product portfolio, leveraging the group’s scale.
The deal includes an additional payment of up to £12m, dependent on future revenue and profitability performance of the Boost business over a two-year period.
“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,” said Roger White, Chief Executive Officer of A.G. BARR.
“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.”
Gray, who is the Chief Executive of Boost Drinks, added: “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.”
NAM Implications:
- The company operates an asset-light business model outsourcing production, warehousing and logistics.
- i.e. focus on your core idea, outsource the rest.
- Prepare it for resale.
- Start with your exit strategy (easier said than done i.e. having given birth, one can grow very fond of the baby).
- A new owner will buy in order to complement its existing offering…and extend its footprint.
- A template for start-ups in the New Norm?
