AG Barr Adds Cocktail Ingredients To Product Mix With Funkin Purchase
LONDON (Alliance News) - Soft drinks group AG Barr PLC Monday said it has acquired Funkin Ltd for up to GBP21 million as it looks to enter the UK cocktails market.
In a statement, the maker of Scottish favourite Irn Bru said it will initially pay GBP16.5 million in cash to Funkin's founding shareholders, plus up to a further GBP4.5 million depending on financial performance targets. The acquisition will be funded by an extension of AG Barr's existing credit facilities.
The initial consideration represents an enterprise value to earnings before interest, tax, depreciation and amortisation multiple of 10.6 times based on adjusted 2014 EBITDA.
Funkin offers fruit purees, cocktail mixers and syrups. It was founded in the late 1990s and is predominately in the UK, but does have fledgling business units established in the US and Europe. AG Barr said there is scope to further increase Funkin's presence in the US and France.
Funkin Chief Executive Andrew King will remain with the business, which will operate within the group as a standalone unit.
"We believe that Funkin has created a unique niche in a growing market and together we can drive exciting growth in a new sub category. We have a proven track record of acquiring and developing high growth brands such as Rubicon," AG Barr Chief Executive Roger White said in a statement.
AG Barr shares were down 1.5% at 622.00 pence late Monday.
By Samuel Agini; firstname.lastname@example.org; @samuelagini
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