Self-styled 'libertine craft brewery' BrewDog has raised $100m from a US private equity firm in a move that could help contribute to the brand's global expansion.
As reported by the Sunday Times, the cash injection from TSG Consumer Partners has given the independent Scottish company an enterprise valuation of £1bn.
In a message to investors, BrewDog said: "TSG has acquired approximately 22% of the company in a transaction where £100m in proceeds went into the company for continued expansion and the balance to create early shareholder equity," adding: “The deal is designed to deliver long term capital with 10 year time horizon.”
According to the Times, TSG is “also buying £113m of shares from existing investors”, which brings the total value of the deal to £213m.
Until now, the upstart has relied on crowdfunding methods to fund its expansion via its 'Equity for Punk' scheme which gives beer lovers the opportunity to buy shares in return for perks like money off drinks.
BrewDog has made no secret of its ambitions to crack the US market, launching its small investor initiative in America last year. At the time it outlined plans to use the finance to build a 9,000 sq metre brewery in Columbus, Ohio, which is scheduled to open later in 2017.
Founders James Watt and Martin Dickie have vowed never to sell the company to a drinks giant, or what they have described as “a monolithic purveyor of industrial beer".
BrewDog has said that following the TSG deal Watt’s stake would reduce from 35% to 25% and Dickie’s holding from 30% to 22%.
Earlier this month BrewDog faced criticism after it tried to fight a Birmingham bar over its name, The Lone Wolf, which is the same as one of its beers. The company U-turned on the decision, calling it a "mistake that hurt a lot", however despite a social media backlash Watt remained unapologetic over a second trademark infringement days later over the use of the term 'punk'.
The controversy came after another party attempted to register ‘Draft Punk’ as a trademark, but the independent brewer objected on the grounds that it owns the ‘punk’ trademark for beer.