Brewdog's value increases to £1bn after US investment

An investment by a US private equity firm has boosted the value of craft beer company BrewDog to £1 billion.

TSG Consumer Partners has acquired approximately 23% of the company for £213 million, with funds to be used to continue global expansion plans.

Co-founders James Watt and Martin Dickie set up BrewDog when they were 24 in response to the “stuffy ales” which dominated the UK drinks market.

A series of crowd-funding rounds previously helped the business grow and investors voted to approve the TSG investment.

The new funding will see earlier investors able to cash in some of their shares.

BrewDog said with a £1 billion valuation, shares purchased in its first crowd-funder “Equity for Punks I” in February 2010 are now worth 2,765% of their original value.

Those who invested in Equity for Punks IV, which closed in April 2016, have seen the value of their shareholding increase by 177% in just one year.

Mr Watt said: “We are growing mega-fast at the moment. We have broken the record for most consecutive years on the Sunday Times Fast Track 100 and in 2017 we are forecasting our growth will be even faster.

“We recently shared our ambitious five-year plan with our Equity Punk shareholders, which included adding more capacity in Ellon and Columbus as well as building new breweries in Asia and Australia.

“All of these projects are immediate opportunities and they all link completely back into our core mission of making other people as passionate about great craft beer as we are. This deal will enable us to take our business, and our community's investment in BrewDog, to the next level.”

TSG Consumer Partners was founded in 1987 and has invested in brands such as vitaminwater and thinkThin.

Managing director Blythe Jack said: “BrewDog is an ideal fit for TSG's mission, which is to partner with visionary founders building next-generation consumer brands.

“The company is truly a pioneer and leader in the rapidly emerging international craft beer market. We look forward to working with BrewDog and its founders as it continues to innovate, expand and harness a unique rebellious energy.”

Mr Watt added: “Ever since we first started this journey in Martin's mum's garage, BrewDog has existed to make other people as passionate about great craft beer as we are.

“We remain more laser-focused on that goal than ever before. Martin and I still remain controlling shareholders and fully committed to BrewDog, and this investment will allow us to accelerate our mission.

“We're not going to let the deal go to our heads, but Martin did buy himself a new jumper.”