5th Dec 2022 09:47
(Alliance News) - AG Barr PLC on Monday said it acquired Boost Drinks Holdings Ltd, a branded drinks business, for GBP20 million on a debt-free, cash-free basis, funded from internal cash reserves.
AG Barr expects the acquisition to be accretive to earnings per share in the first full year of ownership, but noted it will dilute the group's operating margin in the short term.
The Scottish soft drink manufacturer said the acquisition is in line with its strategy to build its portfolio in "high growth and functional areas". In 2021, Boost reported pretax profit of GBP1.9 million, and revenue of GBP42.1 million. It had gross assets of GBP12.5 million.
A large part of the Leeds-based company's business is the sale of energy and protein drinks under its own name.
AG Barr Chief Executive Officer Roger White said the acquisition is part of Barr's strategy to grow through targeted acquisitions, adding: "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."
AG Barr shares were 2.2% higher at 517.00 pence each on Monday morning in London, giving the company a market capitalisation of GBP579.2 million.
By Tom Budszus; [email protected]
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