Investor Breal Capital has snapped up another UK brewer, buying Purity Brewing Co. for an undisclosed amount.
The deal closed on 22 December and sees Breal Capital take over the brewery’s 90,000-hectolitre production facility in Warwickshire, as well as its taproom and food venue in Birmingham.
Founded in 2005, Purity Brewing is known for its Mad Goose, Session IPA and Lawless Lager brands.
On the day the deal was finalised, the company also filed a notice of intent to appoint an administrator.
“We all know the brewing industry has had a turbulent time of late, and like many others, the business has certainly felt the pressure of rising costs,” John Hunt, managing director at Purity Brewing, said in a statement.
“However, we’re incredibly pleased Breal recognises the value and uniqueness of our offering and had the vision to invest in securing the future of the brewery.”
In the year to the end of August 2022, Purity Brewing reported a revenue of £9.5m, up from just under £7m a year earlier. However, the company booked a loss of £634,707. The year before, the brewer’s loss stood at £259,326. The group’s administrative expenses for 2022 were £4.2m, which ate into its gross profit of £4m.
Breal Capital is a UK private-equity firm that has made moves in recent months to acquire breweries in the UK. In May, it purchased Black Sheep Brewery and, in a matter of weeks, also acquired the south London breweries Brew By Numbers and Brick Brewery.
Craft breweries in the UK have struggled in recent quarters amid rising input costs and soaring rents.
In the three months to the end of September, there were 1,817 breweries in the UK, according to a tracker by the Society of Independent Brewers, nine fewer than in the second quarter of the year.
