Australia’s Mighty Craft has offloaded its brewery Lot 100 to an unnamed third-party buyer in the hospitality sector.
The shares in Adelaide Hills-based Lot 100 will be purchased for a cash consideration of at least A$1.5m ($1m), Mighty Craft said in a statement to the Australian Securities Exchange today (12 July).
Mighty Craft said the buyer was led by a consortium of “experienced publicans in the Australian hospitality industry”.
The sale includes all of Lot 100’s business and assets, “such as the leasehold for the Lot 100 cellar door venue in South Australia, branding, intellectual property, trading names, contracting arrangements, inventory, plant and equipment, and licences”.
The Lot 100 venue houses Hills Cider Co., Mismatch Brewing Co., Vinteloper, Adelaide Hills Distillery, Ashton Valley Fresh and a restaurant.
Mighty Craft said the sale is expected to be settled today. The proceeds from the sale will be paid to the drinks group’s senior lenders and will be used to fund the ongoing operations of the business, it said.
Last month, managing director Katie McNamara revealed she was to step down from the group.
Mighty Craft secured an agreement with senior lender Pure Asset Management in a bid to reduce its debts in May. As part of the deal, the group sold 7.5% of its business to Pure Asset Management.
McNamara said at the time: “The royalty swap represents further meaningful debt reduction, which is a key focus of the MCL board.
“This, combined with the A$2.3m debt reduction announced in Q3 FY24 and the proposed flow of funds from the settlement of the 78 Degrees and Mismatch sale, will represent over A$10m of debt reduction across H2 FY24.”
In Mighty Craft’s third quarter ended 31 March, the group posted revenue of A$19.8m, down 22% year on year. It had a net operating cash flow loss of A$2.4m.
In May last year, it launched a strategic review that included taking A$10m from the sale of some of its smaller brands like Jetty Road and Foghorn Breweries.
