AG Barr has announced it has agreed a deal to acquire Rio Tropical, the owner of the Rio soft drinks brand.

The deal sees the Irn-Bru maker acquire the brand from independent brewer and pub company Hall and Woodhouse for a cash sum if £12.3m.

The brand has been marketed, sold and distributed on an exclusive licence basis by AG Barr’s own recently acquired Boost Drinks division since 2021.

The group said the acquisition is entirely funded from its “strong net cash position”.

AG Barr said the acquisition was part of its brand building model and the deal sees it secure the long-term position of the Rio brand within its wider portfolio.

While an “important contributor” to the previously announced ongoing margin rebuild programme, the transaction is not expected to have a material impact on the group’s profits for the current financial year ending 28 January 2024.

Roger White, CEO of AG BARR, commented: “As brand builders we are delighted to acquire the Rio brand and secure its long-term position in our wider portfolio. 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.”

Morning update

On the markets this morning, the FTSE 100 has opened down another 0.2% to 7,355.7pts.

Risers include Just Eat, up 2% to 1,003p, Glanbia, up 1.7% to €14.60 and Bakkavor, up 1.7% to 91.5p.

Fallers include Pets at Home, down 3% to 295.8p, Naked Wines, down 2.3% to 44.8p and Ocado, down 1.8% to 496.2p.

Yesterday in the City

The FTSE 100 opened the week down 0.4% to 7,374.8pts.

Fallers included FeverTree, down 3.5% to 1,003p, Just Eat, down 2.4% to 983p, Coca-Cola Europacific Partners, down 2.3% to €53.50, Bakkavor, down 1.5% to 90p and Hotel Chocolat, down 0.7% to 140.5p.

Risers included Naked Wines, up 4.1% to 45.8p, Ocado, up 3.8% to 505.4p, Science in Sport, up 2.1% to 12p, McBride, up 1.7% to 39.7p, Sainsbury’s, up 1.4% to 255.1p, Greggs, up 1.3% to 2,312p and Marks & Spencer, up 1.3% to 217.1p.