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AG Barr, the Scottish soft drinks manufacturer best known for Irn-Bru, has significantly expanded its portfolio with the acquisition of two premium British drinks brands, Fentimans and Frobishers, in separate deals worth a combined £51 million ($70 million).
The Cumbernauld-based group paid approximately £38 million ($52 million) for Fentimans, the Hexham-based maker of botanically brewed beverages and mixers, in a deal that completed on 2nd February. Additionally, AG Barr acquired Frobishers, a Devon-based producer of premium fruit juices and cordials, for £13 million ($18 million) just prior to its financial year-end in January.
The acquisitions are part of AG Barr’s strategy to capitalize on the growing “adult soft drinks” market, which the company notes is benefitting from a long-term consumer shift toward reduced alcohol consumption. The deals were funded through a combination of existing cash resources and debt.
Euan Sutherland, CEO of AG Barr, commented: “Both brands operate in the attractive adult soft drinks market […] These acquisitions reflect the execution of further meaningful and targeted M&A to elevate growth through broadening the brand portfolio while providing opportunities for cost synergies”.
The announcement coincided with AG Barr’s full-year trading update, which reported a 4% rise in revenue to £437 million ($598 million) for the year ended 31st January.
Source: AG Barr / The Caterer / The Spirits Business / Grocery Gazette
