Private equity firm Breal Group is to invest £1m in expansion at Black Sheep Brewery.
The new owner of the North Yorkshire brewer said the funds would “transform the brewery’s production facilities” and see Black Sheep become “the centre for brewing excellence in the region and beyond”.
The investment consisted of “an entirely new tank farm and state-of-the-art brewhouse” as well as “the complete transformation of the capability and capacity” of its nearby packaging facility, Breal said.
The company did not disclose by how much the investment would increase production capacity at Black Sheep. Currently, beers from Black Sheep Brewery are sold in retailers including Sainsbury’s, Morrisons, Tesco and Asda.
“It’s an exciting time for Black Sheep Brewery, and we are very much looking forward to delivering our ambitious plans,” said Mark Williams, CEO of the Breal Brewing Group. “The Breal Group’s continued investment will allow us to take this fantastic brand to new heights while ensuring our much-loved beers are available to the whole of the UK.
“We’re incredibly passionate about the brewing industry, which is going through some tough times. However, quality and authenticity will always rise to the top, and that’s why we’re committed to investing in Black Sheep, which is bucking the trend, and has a bright future ahead of it.”
Breal acquired Black Sheep Brewery out of administration in May 2023, for around £5m.
The London-based PE firm has subsequently purchased south London outfits Brick Brewery and Brew by Numbers, and Purity Brewing Co in Warwickshire.
The news comes after documents relating to the sale of Black Sheep revealed taxpayers and creditors were set to lose around £4m from the administration.
Black Sheep had debts of more than £6m before being sold to Breal in a pre-pack deal.
Unsecured creditors owed more than £1.5m were “unlikely” to get any money back, while HMRC was also predicted to see a shortfall, administrators Teneo Financial Advisory said.
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