Boost sponsors Leeds United Football Club
(Picture: Arsenal FC via Getty Images)Irn Bru owner AG Barr has bought energy drinks company Boost for £20 million in a bid to corner the booming market for so-called functional drinks.
Simon Gray, who founded Boost in 2001 with his wife Alison, will stay on to operate the business.
As well as pocketing the acquisition cost, the Grays are also in line for an extra £12 million subject to Boost’s performance over the next two years.
Known for its budget-friendly sports and energy drinks, Boost has recently branched out into canned iced coffee, and AG Barr said it sees “significant potential” for adding to the brand’s portfolio.
The Leeds-based brand also sponsors Leeds United Football Club, which Simon Gray supports.
Roger White, AG Barr’s CEO, said: “Consumers are not only looking for liquid refreshment but for the functionality benefits [of a drink], such as energy or protein.
“We believe that’s an area of the market that’s going to keep growing.”
He said he expected the Boost team, which is currently around 40 people, to take advantage of AG Barr’s access to development laboratories and technology to further innovate.
AG Barr owns a number of other soft drinks brands, including sparkling juice Rubicon and Strathmore water, and will fund the Boost acquisition from its cash reserves.
For the year ended 31 December 2021, Boost’s statutory revenue and profit before tax were £42.1 million and £1.9 million respectively.
Simon Gray said: “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 AG Barr Group we will maintain our strong growth trajectory.”
