Irn-Bru Maker AG Barr Sees Shares Soar Following Major Acquisition Spree
Shares in AG Barr, the renowned Scottish soft drinks manufacturer behind iconic brands like Irn-Bru, Boost, and Rubicon, experienced a significant surge of six per cent on Tuesday morning. This notable increase followed the company's announcement of strategic acquisitions totalling approximately £50 million, aimed at expanding its portfolio and bolstering market presence.
Strategic Purchases of Fentimans and Frobishers
The firm confirmed it has successfully sealed a deal to acquire Fentimans, a premium soft drinks specialist based in Hexham, for nearly £38 million. This transaction, funded through a combination of cash reserves and debt, marks a pivotal move in AG Barr's growth strategy. Fentimans is celebrated for its distinctive "Botanically Brewed" beverages, including mixers and tonics, which are expected to complement AG Barr's existing offerings.
In addition to the Fentimans acquisition, AG Barr has also initiated the integration of Frobishers, a Devon-based juice business purchased for £13 million. The completion of both integrations is projected to occur within the next year, enhancing the company's product diversity and operational scale.
Financial Performance and Future Outlook
In a recent trading update, AG Barr reported a revenue increase of nearly four per cent, reaching £437 million for the latest financial period. The company attributed this growth to effective cost efficiency measures, which have driven operating margins up by 110 basis points. This robust financial performance has set the stage for anticipated double-digit profit growth when full-year results are disclosed.
Chief Executive Euan Sutherland expressed optimism, stating, "We enter the 2026 financial year with good momentum in our core brands and from the introduction of exciting new products. In-line with our strategy of enhancing our organic growth with mergers and acquisitions, we are delighted to announce the acquisitions of Fentimans and Frobishers."
Market Dynamics and Brand Performance
The company noted that modest growth in Irn-Bru sales during the second half of the year helped overcome a flat performance in the first half. Furthermore, strong showings from Rubicon and Boost effectively counterbalanced a decline in Funkin cocktail sales, demonstrating the resilience and adaptability of AG Barr's brand portfolio.
As a member of the FTSE 250, AG Barr is scheduled to provide a comprehensive update to shareholders regarding its performance for the year ending 31 January on 31 March. This will offer further insights into the impact of the recent acquisitions and overall business trajectory.
Continuation of M&A Strategy
The acquisitions of Fentimans and Frobishers represent a continuation of AG Barr's proactive mergers and acquisitions strategy. This approach was previously exemplified by the firm's majority stake acquisition in The Turmeric Co, a London-based health-focused business founded by former Wales international footballer Hal Robson-Kanu in June 2025.
The Turmeric Co, known for its recovery-enhancing turmeric shots, has established formal partnerships with prominent sports organisations such as Leicester Tigers, Brentford FC, British Gymnastics, Everton, and Sale Sharks. This strategic investment underscores AG Barr's commitment to diversifying its product range and tapping into emerging health and wellness trends.
Overall, AG Barr's latest moves signal a confident stride towards sustained growth and market expansion, reinforcing its position as a key player in the competitive soft drinks industry.
