The deal is for an initial consideration of £20m, on a debt free cash free basis, and an additional consideration of up to £12m, dependent on future revenue and profitability performance of the Boost business over a two year period from completion, payable in cash at the end of that period.

The acquisition is entirely funded from AG Barr’s strong net cash position. The business is being acquired from Boost founder Simon Gray and his wife Alison.

For the year ended 31 December 2021 Boost’s unaudited statutory revenue and profit before tax were £42.1m and £1.9m respectively with gross assets of £12.5m.

The acquisition is expected to be EPS accretive in the first full year of ownership. Overall group operating margin will be diluted in the short term however it is expected that this will recover in the medium term.

Roger White, AG Barr CEO, 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 A.G. 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 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.”

Simon Gray, founder and CEO of Boost Drinks, 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 A.G. BARR Group we will maintain our strong growth trajectory.”