Brewery could be offered for sale as tough market narrows funding options

North Yorkshire-based brewery and pub operator, The Black Sheep Brewery plc, has confirmed today that it is considering putting itself up for sale.

The business has appointed Teneo as its financial adviser as it  begins a strategic review to explore funding options.

The company explains it has plans to further develop its core beers and new products to build on its brand in Yorkshire, the North and nationally.

It says it is currently experiencing good sales volumes of its beers, but warns, “there remains a significant constraint on funding in light of the prevailing economic conditions.”

In an update this morning, the business states: “The Board is currently considering all options, one such option being a merger or an acquisition of the company, in whole or in part, if such a solution offers the best outcome for shareholders and other stakeholders whilst providing a stable base for the future of the business.”

An offer period has now begun, though the business notes is not currently in talks with any potential offeror and is not in receipt of any approach with regard to a possible offer.

Charlene Lyons, chair & CEO of The Black Sheep Brewery, said: “We are pleased to have seen so many customers enjoying Black Sheep beers over the Easter bank holiday weekend, one of our busiest trading periods of the year.

“However, we believe that now is the right time to conduct this Strategic Review to secure the best outcome for our valued shareholders and other stakeholders.

“The Brewery has exciting and ambitious plans for the future and interesting projects in the pipeline.

“Forward funding is an issue for many businesses in the tight market brought about by the after-effects of Covid-19 on the hospitality sector and this is exacerbated by the cost-of-living issues affecting consumer spending.

“We are confident that the wider investment market will see the opportunities presented by this well-established and highly regarded brand.“