Scottish brewers BrewDog have sold a 22% stake in the business to San Francisco-based private equity house, TSG Consumer Partners for a total of £213m.
In a note to shareholders, the company which was founded 10 years ago by James Watt and Martin Dickie, said it was now valued at £1bn.
The note also said that £100m is to be injected into the business to fund continued expansion, and create ‘early shareholder liquidity’. Shareholders have been offered the opportunity to cash out up to 15% of their equity, or up to 40 shares.
According to BrewDog, some 50,000 fans who have invested in the company through numerous crowdfunding drives since 2010 had seen the value of their investments rise by as much as 2,800%. Those who invested in the fourth round of crowdfunding last year, have seen the value of their shareholding increase by 177% in just one year, it said.
BrewDog has been fiercely critical of the buyout of numerous craft brewers by brewing multinationals in recent years, and has always declared itself as fiercely independent. However, it said the funds would be used to power its ‘ambitious’ five-year expansion plan, including boosting capacity at its Ellon and Columbus breweries, as well as building new breweries in Asia and Australia.
TSG Consumer Partners has previously backed companies including Pop Chips and Vitamin Water.
In the shareholder statement, Watt said: ‘Ever since we first started this journey in Martin’s mum’s garage, BrewDog has existed to make other people as passionate about great craft beer as we are.
‘We remain more laser focused on that goal than ever before. Martin and I still remain controlling shareholders and fully committed to BrewDog, and this investment will allow us to accelerate our mission. We’re not going to let the deal go to our heads, but Martin did buy himself a new jumper.’
BrewDog said the details of the investment and the changes to the company’s capital structure were approved in a meeting on March 29 with 95% of its Equity Punk investors backing the deal.