IRN-Bru maker AG Barr now owns MOMA Foods outright after completing the acquisition of the remaining shares in the business.
The Cumbernauld-based company announced this morning that it had purchased a 32.2 per cent equity stake in the porridge and oat-milk company from founder Tom Mercer, and other minority shareholders, for £3.4 million in cash.
The deal comes after Barr acquired a 61.8% stake in MOMA December last year. At the time, Barr entered into an option deed with Mr Mercer and other remaining shareholders which gave it an agreed path to full ownership in the three subsequent years. The deal announced today brought the acquisition of the remaining stake forward.
READ MORE: Irn-Bru owner completes one of its biggest acquisitions yet
MOMA will remain a “standalone, supported business unit” within Barr, the company said in a statement.
Roger White, chief executive of AG Barr, said: “We are delighted to bring forward the planned full ownership of the MOMA business. This allows us to fully support the MOMA business and brand, such that we can leverage the increased growth potential sooner than allowed for under the original acquisition structure. The completion of the acquisition is a further positive indication of AG BARR’s growth ambitions.”
Barr completed the deal for full ownership of London-based MOMA shortly after it acquired sports and energy drinks firm Boost Drinks Holdings in a transaction worth up to £32m earlier this month. The Scottish company paid an initial £20m to acquire Boost from founder Simon Gray and wife Alison, while a further consideration of up to £12m could be payable, depending on the future revenue and profitability performance of Boost over a two-year period following completion of the deal.
The value of the deal eclipsed the price paid by AG Barr six years ago for Funkin, the fruit puree, cocktail mixers and syrups brand, which it bought for an initial £16m, rising to £21m, but is less than the £60m that it invested to acquire Groupe Rubicon, the exotic fruit juice company, in 2008.
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