Wed, 10 Apr 2024 | MBO/MBI
A brewery based near Shrewsbury has undergone a majority management buyout (MBO), in a deal supported by a seven-figure funding package from Arbuthnot Commercial Asset Based Lending (ACABL).
Salopian Brewery was founded as Snowdonia Brewery in 1994 at a pub in North Wales, before relocating to Shrewsbury in 1995 and being renamed Salopian. In addition to its purpose-built brewery in the village of Hadnall on the outskirts of Shrewsbury, the business also operates a taproom and shop on the same site.
In 2021, the brewery introduced its first canning line, alongside its bottling line. The business continues to craft its traditional range of cask ales, which is now complemented by an array of kegs, bottles and cans.
The structured facilities provided by ACABL include a receivables finance facility, cashflow loan and property term loan. The MBO sees Mark Hill, who became a partner in the brewery following the departure of founder Martin Barry in 2004, increase his commitment to the future of the business, alongside Managing Director Trevor Hourican, with ongoing support and ownership from Wilf Nelson.
ACABL Commercial Director Andrew Rutherford commented: "The key to successful MBO transactions hinges on getting the structure of the buyout right to suit all parties and aligning the funding to ensure the ongoing prosperity of the business.”
“By considering the entire asset mix and incorporating a cashflow loan, our aim was to liberate the maximum level of cash providing a robust platform for future growth."
Salopian Managing Director Trevor Hourican said that the MBO “not only recognises the team that has developed the company into the success it is today, but also ensures the next phase of growth is secured, allowing the business to continue developing well in the future.”
He added that the brewery would continue to diversify through future investments into its canning lines and direct-to-consumer offerings.
The MBO provides valuable investment to Salopian at a time when UK breweries are facing mounting challenges
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