When one of America’s leading private-equity companies decided recently to buy a roughly £213 million stake in one of the world’s fastest-growing craft-beer brewers, the deal team sought advice from TRC, based on our reputation as experts advising clients on a broad range of environmental and sustainability issues. Our Transaction Advisory Services team has been supporting private equity investors for over 25 years and has built a deep understanding of the energy and water usage of breweries, their land-use impacts, and what they need to do to comply with waste and wastewater disposal regulations.
The transaction involved TSG Consumer Partners, based in San Francisco and New York, taking a 22.3 percent stake in BrewDog, a Scottish-born multinational brewer, bar, and hotel operator that’s expanding throughout the world. BrewDog’s newest brewery is near Columbus, Ohio, its first in the U.S.
Both companies have prestigious histories. TSG Consumer Partners, founded in 1987, manages four active funds with assets under management of more than $5 billion, invested in dozens of premium food, beverage, hospitality, health and beauty, and consumer-product brands.
BrewDog was launched in 2007 in Scotland and has steadily grown to 32 BrewDog Bars in the United Kingdom, Europe, and Scandiniavia, with more than 400 crew members. BrewDog’s home “eco-brewery” just north of Aberdeen, completed in 2013, is one of the most technologically advanced and environmentally friendly breweries in the world. BrewDog’s brewhouse uses a progressive heat recovery system to minimize energy consumption and provides all its brewing by-products, spent malt, hops, and yeast to local farmers. The new 100,000-square-foot brewery near Columbus is aiming to be a model of sustainability, environmental stewardship, and energy efficiency as well.
With offices close to Brewdog’s UK and US breweries, TRC supported the investment decision and helped create value through strategic environmental due diligence. My colleague David Contant and I collaborated with TSG’s legal advisor, Ropes & Gray to analyse environmental risks and opportunities specifically related to the brewing sector and provide insights into environmental regulation in both the UK and US.
With counsel from TRC and its other advisors, TSG concluded that BrewDog now merits a valuation of £1 billion, or close to $1.3 billion. Now that’s something to toast!
William Nitch-Smith
Will Nitch-Smith is a Senior Project Manager and TRC’s UK Operations Director. He has over 14 years of experience in environmental due diligence, having advised on over 100 transactions in sectors including automotive, healthcare, chemicals, heavy industrial, infrastructure, real estate and hospitality. WIll advises throughout the ownership cycle; on acquisitions, quantifying and managing liabilities, improving operational efficiencies and on preparing the ESG aspects of the data room prior to sale. His focus at TRC is on environmental compliance and ESG consulting and transaction support originating in the UK and Europe and he maintains a global network of environmental consulting and legal professionals to provide clients with necessary resources to address a wide variety of environmental issues. Contact Will at WNitch-Smith@trcsolutions.com.