L Catterton to invest in craft brewer Innis & Gunn

In a statement, the company recommended that shareholders approve the deal, following which founder Dougal Gunn Sharp would remain the majority shareholder in the business.

A spokesperson for Innis & Gunn told unquote" that L Catterton will invest £15m in exchange for its stake, which gives the company an equity valuation of £54m. However, the spokesperson said the business holds share options that, if exercised in full, would dilute L Catterton's stake to £26.53m, giving the business an equity value of £57.3m.

There is no debt package associated with the transaction, the source confirmed.

The proposed transaction comes 10 months after the brewer raised £2.4m through an equity crowdfunding campaign that saw it sell a 4.8% stake.

Innis & Gunn earmarked the capital raised from its crowdfunding round to open five new bars across Scotland, England and Canada, in addition to its three existing venues in Edinburgh, Dundee and St Andrews. The brewery has since opened one of these new locations in Scotland and invested in a new brewery in Perth.

The brewer generated a turnover of £14.3m in 2016, representing the 13th consecutive year of revenue growth, according to the statement. Turnover has increased by 175% over the last five years, the brewer stated.

The proposed deal would be the second time in five months that a US-based GP has invested in a Scottish craft brewer. In April, TSG Consumer Partners invested £213m in Aberdeenshire-based Brewdog in a deal that valued the business at £1bn.

Founded in 2003 and headquartered in Edinburgh, Innis & Gunn exports its beer to 28 countries.

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• Topics
• Expansion
• UK / Ireland
• Consumer
• United Kingdom