BrewDog worth £1bn after £100M US investment

By Michael Stones contact

- Last updated on GMT

BrewDog is now valued at £1bn after sealing a £100M investment deal with TSG Consumer Partners
BrewDog is now valued at £1bn after sealing a £100M investment deal with TSG Consumer Partners

Related tags: Private equity firm, Finance

Craft brewery BrewDog has a new business valuation of £1bn, after agreeing a £100M investment from US private equity firm TSG Consumer Partners.

The private equity firm will acquire about 23% of the business under the terms of the £213M transaction. The £100M investment will be used to fund the brewery’s global expansion.

BrewDog co-founder James Watt said: “We are growing mega fast at the moment. We have broken the record for most consecutive years on the Sunday Times Fast Track 100 and in 2017 we are forecasting our growth will be even faster.”

‘Turbocharge our mission’

Previously, the brewer financed its business with crowdfunded cash from about 55,000 small-scale investors. “Our new partnership with TSG is a launch pad for us to turbocharge our mission to make the world as passionate about craft beer as we are, but it’s also a validation of our crowdfunding model,”​ said Watt.

“Crowdfunding can no longer be viewed as alternative finance; this is the democratisation of finance.”

TSG Consumer Partners’ md Blythe Jack said: “BrewDog is an ideal fit for TSG’s mission, which is to partner with visionary founders building next generation consumer brands. 

‘Truly a pioneer and leader’

“The company is truly a pioneer and leader in the rapidly emerging international craft beer market. We look forward to working with BrewDog and its founders as it continues to innovate, expand and harness a unique rebellious energy.”

The brewer recently revealed a five-year plan, which included adding more capacity of its Ellon and Columbus facilities as well as building new breweries in Asia and Australia. “All of these projects are immediate opportunities and they all link completely back into our core mission of making other people as passionate about great craft beer as we are,” ​said Watt.

Watt, together with co founder Martin Dickie, will remain controlling shareholders in the business begun in Dickie’s mother’s garage in 2007.

“Martin and I still remain controlling shareholders and fully committed to BrewDog, and this investment will allow us to accelerate our mission”​ said Watt. “We’re not going to let the deal go to our heads, but Martin did buy himself a new jumper.”

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