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Ropes & Gray advises TSG on GBP213m investment in BrewDog

International law firm Ropes & Gray has advised US private equity firm TSG Consumer Partners on its acquisition of a 22.3 per cent stake – worth GBP213 million – in Scottish craft beer company BrewDog.

The deal – which values the company at GBP1 billion – will facilitate further growth of the business, with GBP100 million in proceeds going into the business for continued expansion over the next 10 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 associates Jonathan Yong and Shona Ha, both 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.
Sharma says: “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.”

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