Ropes & Gray Advises TSG on £213m Investment in Scottish Craft Brewer BrewDog
International law firm Ropes & Gray has advised U.S. private equity firm TSG Consumer Partners on its acquisition of a 22.3 per cent stake – worth £213 million - in Scottish craft beer company BrewDog.
The deal – which values the company at £1 billion - will facilitate further growth of the business, with £100million in proceeds going into the business for continued expansion over the next ten years. The balance of the investment will create early shareholder liquidity.
The Ropes & Gray team was led by private equity partners Kiran Sharma (London) and Chris Comeau (Boston), assisted by private equity associate Shona Ha, based in London. Other members of the team included IP partner Rohan Massey, tax partner Brenda Coleman and tax associate Chris Agnoli, all based in London.
Kiran Sharma, private equity partner at Ropes & Gray, said: “This deal illustrates an interesting trend - private equity houses are increasingly willing to make minority investments rather than go down the usual full buyout or at least control route. The market remains hot and prices high and this kind of deal structure enables funds to continue to put money to work by cultivating relationships with founder or family led businesses looking for strategic input and/or liquidity. To get this kind of deal away involves far more complexity in many ways but the opportunities are out there for funds who wish to pursue this kind of strategy.”