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L Catterton offers to buy 27.9% stake in Innis & Gunn

DBR Staff Writer Published 06 September 2017

US-based private equity firm L Catterton has offered to buy 27.9% stake in Scottish craft brewery Innis & Gunn for £15m.

Founded in 2003, Innis & Gunn claims to have risen to the second position for a craft brewer in the UK off-trade and first position for an imported craft brewer in Canada.

The company exports to more than 28 different countries.

The brewery now has four beer kitchens across Scotland and has established a barrel-aging facility in Perth.

Last year, the brewery reported an increase of 22% in its annual group turnover to more than £14.3m. I

n terms of volume, the brewery has seen consistent growth over the past 13 years. For the past five years, there was a 175% increase in sales.

Scottish magazine, The Scottsman, noted that Innis & Gunn has recommended to its shareholders to accept the deal. This is being seen as a move which can appreciate the value of the business. Innis & Gunn’s rival BrewDog sold a 23% of its stake to TSG Consumer Partners in a £213m deal and it valued BrewDog’s business at £1bn.

If the deal receives approval from the shareholders and completed, Innis & Gunn’s founder Dougal Gunn Sharp will remain the single largest shareholder in the company.

He said: “The craft beer category is booming globally, and this is a hugely exciting opportunity at the right time for us to build strongly on the solid foundations that have been laid to double our 2015 turnover by 2018.

“Innovation and quality have been at the heart of Innis & Gunn’s success since day one, and this continues to drive us forward.

“Aside from providing additional capital to accelerate our growth plans, we believe L Catterton will strengthen our business with unparalleled expertise in brand building and a deep understanding of global consumer markets, sharing our vision and supporting our continued expansion and growth.”

Image: Innis & Gunn receives offer from L Catterton to acquire stake in the brewery. Photo: Courtesy of The Innis & Gunn Brewing Company Ltd.