AG Barr has declared its purchase of the Rio soft drinks brand by acquiring Rio Tropical for a total cash payment of £12.3 million.
The UK-headquartered multi-beverage manufacturer will expand its current product lineup by incorporating the Rio tropical soft drink, joining its existing portfolio that features brands such as Irn-Bru, Boost, Funkin, and Rubicon.
AG Barr Deal with Rio Tropical:
Company secured Rio Tropical from the independent brewer and pub company Hall and Woodhouse. The tropical fruit beverage has been exclusively marketed, sold, and distributed by AG Barr’s recently acquired Boost Drinks division since 2021.
In a statement released to announce the acquisition, They revealed that the purchase has been fully financed using its robust net cash reserves.
The company further disclosed that, although the acquisition plays a significant role in its continuous margin improvement initiative, it is not anticipated to have a substantial effect on the group’s earnings for the present fiscal year, concluding on January 28, 2024.
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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.”
