Tilray Brands is close to agreeing a \u00a340m deal to acquire most of BrewDog in a cut-price takeover that will be executed through a pre-pack administration, according to a report from Sky News on Monday.<\/p>\n
The US cannabis and consumer packaged goods group was expected to buy BrewDog\u2019s core brands, its main brewery in Ellon, Scotland, and its operations in the US and Australia.<\/p>\n
Some additional UK assets would be included, although a number of the company\u2019s British bars would not form part of the transaction, industry sources told Sky.<\/p>\n
The process was being coordinated by AlixPartners, which is set to be appointed administrator, with completion subject to court approval.<\/p>\n
The reported price of about \u00a340m was likely to surprise investors given BrewDog\u2019s previous valuation.<\/p>\n
In 2017, private equity firm TSG Consumer Partners acquired a 21% stake in a deal that implied a valuation of at least $1bn.<\/p>\n
Preference shares held by TSG could give it first claim on sale proceeds, Sky said.<\/p>\n
Tilray was understood to have beaten rival bidders including C&C Group, owner of Magners and Tennent\u2019s, Danish brewer Royal Unibrew, and BrewDog co-founder and former chief executive James Watt.<\/p>\n
The deal was expected to leave so-called \u2018retail punks\u2019 – customers who invested roughly \u00a375m in equity crowdfunding rounds between 2009 and 2021 – unlikely to recover their money.<\/p>\n
One source told Sky that sums owed by trade customers, amounting to millions of pounds, were expected to be paid in the coming weeks.<\/p>\n
Founded in 2007, BrewDog grew into one of the most prominent names in British craft beer, with brands including Punk IPA, Elvis Juice, Hazy Jane, Wingman and Lost.<\/p>\n
The company said it produces five of the UK\u2019s top eight craft beer brands and holds a 4% share of the UK off-trade grocery market by value.<\/p>\n
It operates 72 bars globally, including in London and Las Vegas, employs around 1,400 people and runs four breweries in Scotland, the US, Australia and Germany.<\/p>\n
However, the group had recently struggled financially – it reported a \u00a337m loss last year on turnover of \u00a3357m.<\/p>\n
Five years ago, it was also hit by allegations from dozens of former employees that it fostered \u201ca culture of fear\u201d.<\/p>\n
BrewDog\u2019s bars were reportedly closed on Monday as the future of the company was being finalised, with neither Tilray nor BrewDog commenting on the reports.<\/p>\n
Reporting by Josh White for Sharecast.com.<\/p>\n","protected":false},"excerpt":{"rendered":"Tilray Brands is close to agreeing a \u00a340m deal to acquire most of BrewDog in a cut-price takeover…\n","protected":false},"author":2,"featured_media":453979,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[163967,38983,84,3614,45077,154550,45080,45078,154551,3860,59,4841,154554,154555,266,15835,163966,56,54,55],"class_list":["post-453978","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-pound40m","tag-brewdog","tag-business","tag-cannabis","tag-categoryall","tag-categorycompany-news","tag-categorymarket-pulse","tag-categorymarket-report","tag-categorynews-and-announcements","tag-deal","tag-gb","tag-giant","tag-mostread_all","tag-mostread_company_news","tag-reports","tag-strikes","tag-tilray","tag-uk","tag-united-kingdom","tag-unitedkingdom"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/453978","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=453978"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/453978\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/453979"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=453978"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=453978"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=453978"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}