Craft Breweries Explore Selling Equity: Brooklyn, Lagunitas, Ballast Point, SweetWater, Dogfish…

From Reuters:

[Brooklyn} Hindy, who sold control of the brewery three years ago to one of his early backers, the wealthy Ottaway family, said the company needs capital to expand its business and meet rising demand for its beer. So it's considering selling some equity with the help of investment banks, becoming one of more than a dozen U.S. craft brewery companies thinking about accessing the deep pockets of institutional investors….

Some of the craft brewers exploring selling part of themselves, in private placements or initial public offerings, include Lagunitas Brewing Company of Petaluma, California, Ballast Point Brewing Company in San Diego and SweetWater Brewing Company in Atlanta, according to sources who asked not to be identified because these plans are confidential. Each of them is estimated to be worth hundreds of millions of dollars. Representatives for these companies declined to comment….

Sam Calagione, founder of Dogfish Head Craft Brewery in Milton, Delaware, a craft brewer that is exploring selling a minority stake, said in an interview that many private equity firms will introduce themselves as potential minority investors and then try to negotiate a deal structure that gives them control or quickly takes the company public.

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