Brewdog toasts £100m investment from US company

BrewDog said that TSG Consumer Partners has acquired around 22 per cent of the company, in a transaction involving £100m, to fund BrewDog’s continued global expansion.

The transaction values BrewDog, which has two bars in Leeds, and bars in York and Sheffield, at around £1bn .

James Watt, who co-founded BrewDog with Martin Dickie in 2007, said: “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.”

TSG Consumer Partners is a San-Francisco based strategic equity investor in high-growth consumer brands.

TSG was founded in 1987 and has helped more than 70 brands grow.

Co-founders Mr Watt and Mr Dickie launched a crowdfunding initiative - Equity for Punks - in 2010 which has seen the company raise £26m over four rounds.

The company has launched 44 bars around the world and now exports into 55 countries. It also champions other small breweries in its venues.

Blythe Jack, the managing director at TSG Consumer Partners commented: “BrewDog is an ideal fit for TSG’s mission, which is to partner with visionary founders building next generation consumer brands. 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.”

Mr Watt commented: “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 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.”

Mr Watt added: “Our Equity Punks now own part of an independent business that has attracted an awesome partner who will help grow their investment even further. Crowdfunding can no longer be viewed as alternative finance; this is the democratisation of finance.”

A Brewdog spokesman said the company is looking to grow in Yorkshire, but has no specific plans at the moment.

The spokesman added: “There are a lot of exciting breweries in Yorkshire and Brewdog is thrilled to be part of that scene.”