Barr(A.G.) PLC Acquisition of Funkin Limited (8192D)
February 02 2015 - 10:54AM
UK Regulatory
TIDMBAG
RNS Number : 8192D
Barr(A.G.) PLC
02 February 2015
A.G. BARR p.l.c.
A.G. BARR p.l.c. announces the acquisition of Funkin Limited
("Funkin")
A.G. BARR p.l.c. ("A.G. BARR or "the Group"), the soft drinks
group, today announces the acquisition of Funkin Limited from its
founding shareholders for an initial cash consideration of
GBP16.5million plus up to a further GBP4.5 million subject to the
achievement of certain financial performance targets. The initial
consideration represents an EV/EBITDA multiple of 10.6 times based
on adjusted* 2014 EBITDA.
Funkin was founded in the late 1990s and offers a broad range of
premium cocktail solutions including fruit purees, cocktail mixers
and syrups. Sales have been developed through close relationships
across both the on-trade channel and increasingly in restaurants.
The business is predominately in the UK but does have fledgling
business units established in the USA and Europe. The business has
grown rapidly to achieve revenues of c.GBP9 million in 2014.
The acquisition of Funkin will strengthen A.G. BARR's portfolio,
and takes the Group into a new segment of cocktail mixers. The UK
cocktail market has exhibited strong growth in recent years as
cocktail consumption has become mainstream and consumers have
sought more differentiated drinking experiences. Funkin has been
well placed to capitalise on this trend as its products enable
outlets, including bars, pubs, clubs and restaurants to provide
consumers with high quality cocktails efficiently and consistently.
As a result, the Funkin brand has achieved a high level of
recognition and strong relationships with its customer base,
supported by a number of marketing initiatives and its well
deserved reputation for quality products and creative
innovation.
Going forward, Funkin will continue to drive its on-trade
business and will also look to realise the opportunity to leverage
A.G. BARR's routes to market, as well as its branding and marketing
expertise, to increase Funkin's presence and brand recognition in
additional channels and in new Funkin branded products.
Funkin has developed its presence in selected international
markets, primarily the US and France to date. The cocktail markets
in these countries are evolving rapidly and Funkin has experienced
a positive customer response. A.G. BARR believes there is
significant scope to increase Funkin's presence in these markets
going forward.
The acquisition will be funded by an extension of A.G. BARR
existing credit facilities.
Funkin CEO Andrew King will remain with the business under A.G.
BARR's ownership and Funkin will operate within the Group as a
supported, yet stand alone, business unit.
A.G. 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."
*Adjusted for certain non-recurring shareholder costs
2 February 2015
For further information please contact:
A.G. BARR Tel: 01236 852400
Roger White, Chief Executive
Stuart Lorimer, Finance Director
Instinctif Tel: 020 7457 2020
Partners Justine Warren
Matthew Smallwood
This information is provided by RNS
The company news service from the London Stock Exchange
END
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