Innis & Gunn gets offer it can’t refuse as L Catterton splash out £15m on shares
L Catterton, the World’s leading consumer goods private equity firm has made an offer to buy a 27.9% stake in craft brewer Innis & Gunn for £15m. The company revealed that L Catterton had made an offer of investment yesterday when it recommended to its Ordinary Shareholders to consent to an offer of investment in the business from L Catterton. This would value the business at £54m.
Since its inception in 2003, Innis & Gunn has grown to be the No.2 craft brewer in the UK off-trade. The brewer recently reported a 22% increase in its annual group turnover to more than £14.3m in 2016. This was the 13th consecutive year of volume growth, with volume over the past five years increasing by 175% including sales of the Inveralmond Brewery brands which were successfully integrated into the Innis & Gunn business last year.
Dougal Gunn Sharp, Innis & Gunn Founder and Master Brewer said, “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.”
Completion of the deal would give L Catterton a minority stake of 27.9% in the business, and Dougal Gunn Sharp will remain the largest single shareholder, and the offer from L Catterton reflects and confirms the price paid by the crowdfunding community In November 2016, when Innis & Gunn raised £2.4 million through its first equity crowdfunding campaign, AdventureCapital™.
Earlier this year Brewdog, Scotland’s other craft beer success story, sold a 22% stake to US-based TSG Consumer Partners for £213m.