Scottish soft drinks supplier AG Barr has acquired energy drink brand Boost Drinks.

The acquisition, funded from Barr’s cash reserves, is worth £20m initially, with an extra £12m to be paid depending on future revenue and profitability over a two-year period.

In announcing its acquisition, Barr noted Boost’s strong position in the independent channel and highlighted the potential to grow the brand and develop its product range.

Boost’s founder and CEO Simon Gray said the brand would continue to run independently from its office in Leeds, operating as a standard supported business unit within the AG Barr group.

Its leadership and products would remain the same, he added.

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Roger White, CEO at Barr, said: “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 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.”

“This is a really exciting next step in Boost’s journey as AG Barr has a proven track record of acquiring and developing attractive brands,” added Gray. “We are confident that together we will be even stronger positioned to take advantage of a number of exciting growth opportunities.”

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