The North Yorkshire brewer of cask, keg, and bottled and canned beers, including Best Bitter and 54 Lager, has recruited Teneo as its financial adviser as it commences a strategic review to explore the funding options available to the company.
Black Sheep Brewery said it has plans to take the business forward with the further development of its core beers and new products to build on its strong brand in Yorkshire, the north and nationally.
Constraint on funding
It is currently experiencing good sales volumes of its beers, however, there remains a significant constraint on funding in light of the prevailing economic conditions.
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 while providing a stable base for the future of the business.
Charlene Lyons, chair and chief executive of the business that runs four sites including Foley’s Tap House in Leeds, 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.”
Ambitious plans
Lyons continued: “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.”
In February, the company announced it would be hiking its prices for cask, kegged and packaged beers by 19.5%.
