Soft drinks group AG Barr has announced the acquisition of cocktail mixer manufacturer Funkin for £16.5m, which could rise to £21m depending on certain financial performance targets.
The acquisition will strengthen the company’s portfolio and open up a new market for AG Barr, which claimed that the UK cocktail sector had “exhibited strong growth in recent years as cocktail consumption has become mainstream”. AG Barr bought the London-based company from its founding shareholders, who built up a business generating £9m’s worth of revenues in 2014.
The deal will be funded through an extension of AG Barr’s credit facilities. Funkin’s CEO, Andrew King, will remain with the business as it continues to operate as “a supported, yet stand alone” entity.
AG BARR chief executive Roger White said: “We are delighted that Funkin will become part of A.G. BARR. 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. Under our ownership we believe Funkin is even more strongly positioned to take advantage of a number of exciting growth opportunities.”
Funkin will now seek to take advantage of AG Barr’s global reach. “Funkin will continue to drive its on-trade business and will also look to realise the opportunity to leverage AG Barr’s routes to market, as well as its branding and marketing expertise, to increase Funkin’s presence and brand recognition in additional channels,” the Scotland-based group added.
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