AG Barr has announced its acquisition of the Rio soft drinks brand through the purchase of Rio Tropical, for a total cash consideration of £12.3 million.
The UK-based multi-beverage manufacturer will add the Rio tropical soft drink to its existing portfolio, which includes the Irn-Bru, Boost, Funkin and Rubicon brands.
AG Barr acquired Rio Tropical from the independent brewer and pub company Hall and Woodhouse. The tropical fruit drink has been marketed, sold and distributed on an exclusive licence basis by AG Barr’s recently acquired Boost Drinks division since 2021.
In a statement announcing the acquisition, AG Barr said that the purchase has been entirely funded from its strong net cash position.
The company also revealed that while the acquisition is an ‘important contributor’ to its ongoing margin rebuild programme, the transaction is not expected to have a material impact on the group’s profits for the current financial year ending 28 January 2024.
Roger White, CEO of AG Barr, commented: “As brand builders we are delighted to acquire the Rio brand and secure its long-term position in our wider portfolio. This allows us to realise the benefits of full brand ownership and support Rio’s continued growth. This acquisition is a further positive indication of our strategic ambitions.”
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