Red Devil bought by bosses

By NICK GOODWAY FOR MAILONLINE
Updated:

 

RED Devil, the energy drink rapped last year for its suggestive advertising, has been bought out by its management.

The deal, worth more than £10m, has been backed by Hotbed, a private equity house that specialises in putting small private investors into buyouts.

Red Devil was launched in 1995 and is now sold in more than 30 countries. Britvic has the trademark and distribution rights in Britain and Ireland.

The main vendor of the business is US-based private investor Tom Lyons although management, led by Ari Koivula, owns a minority stake in the holding company, Ultra Premium Brands.

Susan Murray, former chief executive of Littlewoods stores, is to chair the company.

Hotbed chief executive Gary Robins, said: 'We have seen growing interest from people in the City who are thinking more about investing their bonuses in private equity. After all, for the price of a top-of-the-range Porsche, they can pick up four stakes in our investments at our entry price of £25,000.'

Former 3i investment director Robins added: 'Obviously, there is risk in private equity but City people in particular seem to be keen to spread their portfolios beyond the usual equities and property.'

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