Thu, 15 Jun 2023 | BUSINESS SALE
The business and assets of London brewer’s Brick Brewery have been acquired by UK-based private equity firm The Breal Group.
According to documents filed at Companies House, Breal purchased the brewery in a pre-pack deal for around £318,000. The documents filed show that the brewery’s equipment was valued at £51,441, its intellectual property at £30,000, stock at £98,000 (+ VAT) and accounts receivable at £138,000.
Brick Brewery ran into financial difficulty during the COVID-19 pandemic and, when it wasn’t able to make repayments on debts incurred during this time, the London brewer found itself insolvent in March of this year. After filing a notice of intent, Brick received four acquisition offers, accepted a pre-pack offer from Breal in May before entering administration on 2 June.
The Breal group, which is a multi-disciplinary equity, lending and advisory services group, also bought North Yorkshire-based Black Sheep Brewery, as well as its shop and pubs, in May this year. The company is seen as having a proven track record of successfully transforming and growing the businesses it acquires.
Due to rising energy and raw material costs, increasing rents and additional competition, many craft breweries in the UK have struggled over the last twelve months and have been forced to close their doors. London-based Brew By Numbers filed a notice of intent to appoint administrators in May this year, shortly after Manchester-based brewer and taproom Alphabet Brewing Company fell into administration.
According to figures from Mazars released earlier this month, brewery insolvencies tripled in the year to March 31 2023, from 15 in the year prior to 45. Operators in the sector are facing an overcrowded industry following the craft beer boom of the 2010's, as well as soaring costs.
Commenting on the sector's struggles, Mazars associate Director Paul Maloney said: “The craft beer market became heavily overpopulated over the last decade. The cost of living crisis now means many of these brewers are fighting for a place in a shrinking market. Some of them will not make it.”
Read more about distressed businesses among mid-sized UK SMEs.
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