US investor makes move for Innis & Gunn stake

Edinburgh-based craft brewer Innis & Gunn has been approached by a US private equity firm with links to luxury goods group LVMH to buy a 27.9 per cent stake in the business.

The deal would vluse Innis & Gunn which was established in 2003 at about £52 million.

L Catterton, headquartered in Greenwich, Connecticut, was formed last year in a partnership with consumer focused investor Catterton, Glenmorangie owner LVMH and the family holding company of French tycoon and LVMH boss Bernard Arnault.

Innis & Gunn said it was recommending that shareholders accept the offer.

If the offer is approved, founder of Innis & Gunn, Dougal Sharp, will continue to remain the largest single shareholder in the brewery. Speaking about the L Catterton offer, Sharp stated:

“The craft beer category is booming globally, and this is a hugely exciting 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. 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.”

The L Catterton offer comes less than a month after Innis & Gunn announced its annual gross profits have increased from£6.8 million in 2015 to £8.5 million, and annual group turnover has raised by 22% to more than £14.3 million. The brewery also purchased Inveralmond Brewery in Perth, opened two new bars in Scotland, and has signed distribution agreements in France, China, Hong Kong, and Taiwan.

The move also follows rival Scottish beer producer Ellon-based Brewdog selling about 23 per cent of its business to California-based investor TSG Consumer Partners.

Mr Sharp said: “The craft beer category is booming globally, and this is a hugely exciting 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.”

Innis & Gunn saw its sales surge by 22 per cent last year, returning it to profit and putting it in reach of its £25 million turnover target.

It also benefited from the integration of the Inveralmond Brewery business in Perth, which it bought last year, as it saw turnover grow to £14.3 million in 2016, up from £11.8 million in 2015.

Innis & Gunn, which recently raised £2.4m in a crowdfunding campaign.