The owner of Black Sheep Brewery has secured a £10.75m facility from Secure Trust Bank Commercial Finance (STB CF), supporting the growth of its portfolio of established regional breweries.
Established in 1992 by Paul Theakston, Black Sheep Brewery was set up to keep a family tradition running, after the brewery run by his family for five generations was sold to a national producer.
Earlier this year, Black Sheep Brewery was acquired by Keystone Brewing Group, part of the BREAL Capital family, which was set up to unite a diverse family of breweries under one umbrella business. It forms part of the wider firm's commitment to championing strong brands in the brewing industry.
Following its acquisition, Black Sheep Brewery will benefit from the joint expertise and experience of the group, sitting amongst a strong portfolio, comprised of Purity Brewing Co, Brick Brewery and Brew by Numbers.
The facility will support Keystone Brewing Group as it embarks on an exciting new period of growth and innovation, providing the breweries with the working capital to continue focusing on strategic growth, which includes acquiring iconic institutions.
The brewing sector has experienced pressure following a significant reduction in consumer spend over the last few years. During this time, Keystone Brewing Group started to acquire breweries as part of its buy-and-build strategy, with the acquisitions helping to keep iconic local producers in operation.
Keystone Brewing Group now plans to increase the geographical footprint of the breweries across the UK, establishing a larger presence outside of their local bases. It will increase the joint brewing capacities to meet an uptick in demand, whilst also improving efficiencies to drive the profitability of the businesses.
Mark Williams, CEO at BREAL Capital, said: "The deal provides us with the additional capital to accelerate the growth ambitions we have for the four breweries in the Group. Working with the team at Secure Trust Bank, we were able to secure a flexible facility that could complement existing capital structure and unlock the additional working capital to help grow the businesses.
"As well-known breweries in the UK, this new funding will help us unlock an exciting new chapter in our brewing journey and we look forward to seeing how the businesses will grow over the next few years."
Dominic Castle, Regional Managing Director for Yorkshire, North-East and Scotland at Secure Trust Bank Commercial Finance, said: "BREAL Capital has the ability and vision to capitalise on the many opportunities that may present themselves within the brewing sector, including further bolt-on acquisitions. The acquisition of this iconic Yorkshire brewery really stood out to us, and we are proud to be working alongside them as they continue to build their portfolio of high quality regional breweries under the Keystone brand.
"We were able to create a flexible facility that will support Keystone Brewing Group to expand both its geographical reach and operational capacity. It was great to work alongside BREAL on this deal, further demonstrating the complementary relationship between asset-based lenders and private equity firms. I look forward to seeing what is next for the Group."