London-based private equity firm Breal Group has added Warwickshire’s Purity Brewing Co to its growing roster of craft breweries.
The deal, struck for an undisclosed sum last week, sees Purity join Black Sheep Brewing, Brew By Numbers and Brick Brewery, all of which were acquired by Breal in 2023.
Purity is believed to have run into financial difficulty amid rising operational and raw material costs. Its latest accounts, for the year ended 31 August 2022, showed a £540,533 pre-tax loss, on sales of £9.5m.
The company filed a notice of intent to appoint an administrator on 22 December, the same day Breal said the deal to purchase the brewery was completed.
Breal said Purity had been a target since early 2023.
It added that the deal “further strengthens our growing portfolio of investments in the brewing and hospitality sectors, and underlines our commitment to the industry as a whole”.
Purity Brewing Co MD John Hunt said the business had “certainly felt the pressure of rising costs”.
Hunt added Purity was “incredibly pleased Breal recognises the value and uniqueness” of its offering.
“We’re very much looking forward to continuing to brew our much-loved, award-winning beers and delighting drinkers in the Midlands, London and beyond,” he added.
Purity, which brews beers including Mad Goose IPA, Longhorn IPA and Lawless Lager, was established in 2005 by Paul Halsey and Jim Minkin. It brews on a farm-based facility in Warwickshire and also operates a taproom and kitchen in central Birmingham.
In 2018, the brewery received £7.5m in backing from investment company Business Growth Fund (BGF).
Breal Group has become an increasingly prominent player in UK craft beer over the course of the past 12 months, having bought up four struggling breweries in London, Warwickshire, and North Yorkshire. It also owns restaurant groups D&D London and Vinoteca.
The firm acquired Black Sheep Brewery in May, before adding Brick Brewery and Brew By Numbers in the summer. All three deals were completed with the companies facing administration.
In August, The Grocer reported unsecured creditors owed more than £1m by Brew By Numbers were unlikely receive any of the money overdue to them.
The insolvent south London brewery was subsequently bought out of administration by Breal.
No comments yet