Edinburgh brewer agrees to sell third of firm to US equity house to secure major cash injection

Edinburgh-based craft brewer Innis & Gunn has announced its intention to accept a £15 million investment by a major US private equity investor in exchange for a 28 per cent stake in the business.

Innis & Gunn said its shareholders have accepted the offer which was first reported earlier this month, with 99 per cent voting to back the deal with Connecticut-headquartered L Catterton.

The finance helps the brewer accelerate its recent expansion, intended to double turnover between 2015 and 2018.

Innis & Gunn founder Dougal Sharp said:“We are delighted to welcome L Catterton to Innis & Gunn at a pivotal time for our business.

“With the backing from our shareholders we’re excited to move forward, strengthened with the support of L Catterton’s unparalleled expertise in brand building and understanding of global consumer markets.

“This is a huge opportunity at the right time for us to build strongly on the solid foundations that have been laid to double our 2015 turnover by 2018.

“Innovation and quality have been at the heart of Innis & Gunn’s success since day one, and this continues to drive us forward as we look to 2018 and beyond.”

The new investment values the brewer, formerly based in Edinburgh, at £58 million.

Its revenue grew by 22 per cent last year to £14.3 million.

The company sold 27 million bottles of beer, making it the second biggest off-trade craft beer producer in Britain.

It became the top imported craft beer in Canada and number two in Sweden, while exporting to 28 countries.

Last November, the company raised £2.4m in capital funding from crowdfunding, leaving it with 2,000 investors.

Jean-Philippe Barade, a partner at Connecticut-headquartered L Catterton, said: “The craft beer category is booming globally and Innis & Gunn has established a leading position.

“The potential for this brand and business is hugely exciting and it is in an exceptionally strong place to capitalise on the growth in consumer demand for craft beer.”