Soft drink manufacturer A.G. Barr has acquired cocktail company Funkin, in a deal worth £21m.
The deal includes initial cash consideration of £16.5m and close to £4.5m, which will be offered when certain financial performance targets are achieved.
With this investment, A.G. Barr will enter into a new business of cocktail mixers.
Funkin offers a wide range of cocktail solutions including fruit purees, cocktail mixers and syrups which are sold to the on-trade channel and restaurants.
It predominately operates in the UK, but has business units established in the USA and Europe.
Commenting on the acquisition, A.G. Barr CEO 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."
A.G. Barr claims that the British cocktail market has witnessed strong growth in recent years as cocktail consumption has become mainstream and consumers have sought more differentiated drinking experiences.
Image: Funkin offers a wide range of cocktail solutions. Photo: courtesy of David Castillo Dominici / freedigitalphotos.
