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Brewdog Gets £213 Million Investment

(10th April 2017)

It's estimated that Aberdeenshire craft beer firm Brewdog could become a listed business in 4-5 years after a a cash injection of £213 million for a 22.3 percent stake in the company. Brewdog Investment

BrewDog chairman James Watt is quoted as saying that while the craft-beer firm “managed to do a deal with investors TSG on "a 10-year time horizon”, realistically it “would look to list in four or five years’ time”. He also said the reason Brewdog have teamed up with TSG is because of their “great track record in taking companies public”.

If the track record of new investors San Francisco based TSG Consumer Partners is anything to go by the three to four year time-frame  could be cut back to closer to three years. Recent TSG investments and success stories include Glaceau and Popchips, where the private equity house exiting its positions after three and four years in each case.

The new investment means that Brewdog can drastically accelerate their business plan and condense a five year schedule into as little as two years.

The plan includes building a brand new £5 million hotel next to BrewDog’s Ellon flagship brewery, the planning stage has been somewhat thwart with a tricky relationship between Brewdog and the local council in relation to the purchase of land but Brewdog are now quietly confident the deal to put the wheels in motion in very close. The new hotel should create upwards of 80 jobs in the local area, which will be very well received. Brewdog also plan to build a hotel in the United States.

Additional plans include the launch of between five and ten new establishments in the UK and the US that Brewdog call “mini-tap room” bars, these will be built at an estimated cost of £10-!5 million. Brewdog also plan to build a waste water treatment plant in Scotland and expand their breweries in Asia and Australia.

TSG intend to pump around £100m into these projects with the remainder set aside for the purchase of shares.

 




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