Tilray Brands, Inc. of North America said on Monday it completed the acquisition of “certain highly strategic assets” of Aberdeenshire-based craft beer company BrewDog for £33 million.
The deal will cost almost 500 jobs and leave many of BrewDog’s early-stage crowdfunders empty-handed.
Tilray Brands said the deal includes BrewDog’s “global brand and related intellectual property, the UK brewing operations and eleven strategic brewpubs in the United Kingdom and Ireland, for a total consideration of £33 million.”
Tilray calls itself “a leading global lifestyle and consumer packaged goods company at the forefront of the beverage, cannabis and wellness industries.”
In April 2017, BrewDog said San Francisco private equity firm TSG Consumer Partners acquired 22% of the Aberdeenshire firm in a transaction that valued it at roughly £1 billion, with news reports claiming BrewDog co-founders James Watt and Martin Dickie would potentially share up to £100 million as a result of the 2017 deal.
“No offer was made at any stage of the sales process, from any prospective bidder, which would have preserved BrewDog in its entirety,” said AlixPartners, which acted as the administrator for BrewDog.
About 200,000 “equity for punks” investors, many of whom had at one stage hoped to benefit from and IPO, will not receive anything, according to AlixPartners.
Tilray said it has operations in Canada, the United States, Europe, Australia and Latin America and that it “is leading as a transformative force at the nexus of cannabis, beverage, wellness, and entertainment elevating lives through moments of connection.”
The firm said its mission is to be “a leading premium lifestyle company with a house of brands and innovative products that inspire joy and create memorable experiences.”
Tilray said it is separately negotiating to acquire certain BrewDog assets in the United States and Australia.
The deal preserves 733 jobs, but 38 BrewDog bars will close with 484 jobs lost.
“Founded in 2007, BrewDog quickly became one of the largest independent craft beer brands in the United Kingdom with its portfolio of iconic craft, premium and low & no alcohol beer brands, including Punk IPA, Hazy Jane, Lost Lager and Wingman,” said Tilray.
“From its beginnings in the UK, it developed its strong global brand awareness through its global expansion via international breweries, localized brewpubs and strategic partnerships. For Tilray, the acquired asset portfolio presents a significant opportunity for growth in the UK and previously untapped international markets.”
Tilray Brands chairman and CEO Irwin Simon said: “BrewDog is one of the most iconic, mission-driven craft beer brands in the UK. It helped redefine modern craft beer through bold innovation, fearless creativity and an unwavering commitment to great beer.
“What makes BrewDog truly special has always been its brewers, its brewpubs and its passionate community of beer fans. As we begin a new chapter for this great brand, our priority is to refocus BrewDog on the craft beer excellence that made it beloved in the first place and strategically invest to return the operations to profitable growth.
“BrewDog’s future is bright, and we are committed to ensuring the brand continues to lead and inspire the global craft beer movement …
“Tilray’s management brings operational and strategic expertise, a diversified global beverage infrastructure and a disciplined investment approach needed to unlock BrewDog’s next phase of growth.
“In addition, my team and I have significant experience in the UK market where we previously built an ~ $1.5 billion consumer packaged goods business at my prior company with beloved brands, including Ella’s Kitchen, Hartleys, Tilda, New Covent Garden and Linda McCartney.
“With the BrewDog acquisition, our total global beverage platform is expected to grow to ~$500 million in annual revenue, creating one of the largest diversified craft beverage platforms globally.
“Through this expanded platform, we see significant growth opportunity for BrewDog through broader distribution and the ability to invest back into brand and innovation, while introducing Tilray’s complementary beverage brands into international markets. On a combined basis, we expect Tilray’s diversified global business to reach ~$1.2 billion in annualized revenue.”
Tilray added: “Under the terms of the transaction, Tilray paid £33 million in exchange for BrewDog’s worldwide intellectual property, UK brewing operations and a portfolio of eleven premier and profitable brewpubs including Birmingham, Canary Wharf, Dogtap Ellon, Dublin, Edinburgh DogHouse, Lothian Road, Manchester, Paddington, Seven Dials, Tower Hill, and Waterloo.
“These brewing and related operating assets are expected to generate annual net revenue of ~$200 million and adjusted EBITDA of ~$6 – ~$8 million. The acquired business is expected to become cash flow positive beginning in fiscal 2027 as integration initiatives and operational efficiencies are realized.
“The proposed U.S. and Australia components of the acquisition will be subject to a separate purchase agreement to be negotiated by the parties and is expected to be finalized and closed in approximately 30 days.
“Due to customary licensing transfer timelines associated with brewing operations, Tilray does not anticipate a meaningful EBITDA contribution in the fourth quarter of fiscal 2026, and brewing revenues in early fiscal 2027 may temporarily reflect timing differences related to license transfers following closing.”
Jefferies LLC acted as financial advisor, and Proskauer Rose LLP acted as external legal counsel to Tilray Brands.
Unite union general secretary Sharon Graham said: “This is a devastating day for Brewdog workers. Nearly 500 lost livelihoods while yet another corporate deal is stitched together behind closed doors.
“Brewdog workers built this brand. They deserved respect. Instead, they were treated as disposable pawns. Unite will not rest until our members have legal and financial justice.”
Unite union national lead for hospitality Bryan Simpson said: “The way in which senior management have conducted themselves throughout this sales process has been nothing short of a national disgrace – with workers being given no information about the company’s plans or their futures.
“For the CEO to tell workers that they were redundant with immediate effect, on a conference call with only 25 minutes notice, has echoes of P&O and is deplorable. Unite will be ensuring that our members receive everything they are legally entitled to.”