Irn-Bru maker AG Barr PLC (LSE:BAG) has announced the acquisition of soft drink brand Rio Tropical Limited through a £12.3 million deal.
Though AG Barr has marketed, sold and distributed Rio products since 2021, it said in a statement that the acquisition would secure the brand for its wider portfolio in the long term.
This will be an important contributor to AG Barr’s margin rebrand programme, the FTSE 250-listed drinks firm added.
“As brand builders, we are delighted to acquire the Rio brand and secure its long-term position in our wider portfolio,” chief executive Roger White commented.
“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.”
Rio had been sold through AG Barr’s Boost Drinks division, which itself was bought in late 2022 in a £20 million cash deal.
The latest acquisition was also entirely funded through AG Barr’s cash reserves.