Gipsy Hill has been sold to the Sunrise Alliance Beverages Group to avoid falling into administration.
The south London brewer, founded in 2014 by Sam McMeekin and Charlie Shaw, will join St Peter’s Brewery, Wild Beer Co, Curious Brewing and Portobello Road Brewery in Sunrise’s roster.
Production will remain at Gipsy Hill’s existing site, while fan favourites such as Hepcat Session IPA will continue to be produced.
Financial terms of the deal were not disclosed.
However, in a message to shareholders seen by The Grocer, McMeekin revealed: “Without further funding we would almost certainly be looking at administration”.
“Too much industry turbulence, apparent competition and pricing pressure in the supply chain,” had contributed to Gipsy Hill being unable to find an anchor partner for a failed £500k equity crowdfund last year, said McMeekin.
“It became clear that Gipsy Hill needed a plan that would not just allow us to survive for another few years at a loss before needing to raise more equity, but one that would position us to thrive in the face of the current industry-headwinds,” the brewer’s founder added.
Sunrise subsequently made “an offer to purchase and partner with Gipsy Hill as a going concern,” said McMeekin, adding the offer had been accepted and the Suffolk-headquartered brewing collective had purchased 100% of the shares in the business.
The proposed deal valued Gipsy Hill at £5m and was based on a multiplier of 0.9x Gipsy Hill’s forecasted revenue for FY2027, McMeekin said.
Although Gipsy Hill failed hit its crowdfunding target on Republic Europe (formerly Seedrs) last year, the brewer previously raised £865k from the crowd at a pre-money valuation of almost £21m in 2022.
“We anticipate that all shareholders will receive deferred consideration for their shares, which should pay-out from Gipsy Hill’s cashflow once the business has turned to profit, over the years 2028-2030,” said McMeekin.
Companies House filings showed Gipsy Hill has racked up losses of almost £7m since 2014, with losses of £1.3m reported in 2023.
Joining Sunrise Alliance Beverages would provide “Gipsy Hill with stability and the resources to navigate the evolving market environment”, a press release announcing the deal said.
“Gipsy Hill is a fantastic business with excellent beers, strong brands and loyal consumers,” said Sunrise Alliance Beverages CEO Richard Mather. “Our union will enable Gipsy Hill to benefit from our group’s collective resources and operational efficiencies, while retaining its autonomy and character.”
McMeekin added: “This strategic partnership allows us to keep doing what we do best: brewing exceptional beer for our loyal customers. Sunrise Alliance Beverages shares our vision for quality, customer service, community, innovation and sustainability, and this partnership will empower us to continue to thrive and innovate.”
Sunrise Alliance Beverages has evolved out of St Peter’s Brewery over the last year as the Suffolk-based supplier has looked to grow revenue streams and expand further into craft beer.
Last September, the business acquired the Wild Beer Co and Curious Brewing brands from private equity Firm Risk Capital Partners for an undisclosed sum.
It added Portobello to its roster earlier this month.
No comments yet