IRN-Bru manufacturer AG Barr has unveiled a move into the cocktail mixers market with the acquisition of London company Funkin for up to £21 million.

AG Barr highlighted strong growth in the UK cocktail market in recent times, with consumption becoming "mainstream".

It declared that Funkin, which offers fruit purees, cocktail mixers and syrups, was well placed to capitalise on this trend by enabling the likes of bars, pubs, clubs, and restaurants to provide customers with high-quality cocktails, "efficiently and consistently".

Asked about the rationale behind the acquisition, AG Barr chief executive Roger White replied: "It is still in the drinks arena. It is just slightly different. They have a very strong on-trade position. We want them to continue, and develop the business, on a standalone basis.

"It is about how they, with our support, can accelerate the growth and do what they have been doing."

Mr White noted that Funkin founding shareholder Alex Carlton, who had the largest stake in the business, was leaving but would do some consultancy work with AG Barr.

Funkin chief executive Andrew King, who also had a sizeable shareholding in the firm, will remain with the cocktail mixers business under AG Barr's ownership.

AG Barr is paying an initial cash consideration of £16.5m. A further amount of up to £4.5m will be payable, subject to the achievement of financial performance targets.

The Scottish company said that the initial cash consideration represented an enterprise value to earnings before interest, tax, depreciation and amortisation multiple of 10.6.

Funkin was founded in the late 1990s. It made revenues of around £9m in 2014. Funkin's business is mainly in the UK, although it has fledgling units in the US and Europe.

The company, based in Camden, has about 23 staff, Mr White noted. He added that, while Mr Carlton was leaving the Funkin business, the rest of the employees would remain with it under the ownership of AG Barr, which has a workforce of about 1,000.