Sunrise Alliance Beverages, the parent company of St Peter’s Brewery, has acquired Gipsy Hill Brewery to prevent the London-based craft brewer from entering administration. The acquisition adds another respected brand to Sunrise’s diverse portfolio, which already includes Wild Beer Co, Curious Brewing, and Portobello Road Brewery.
Gipsy Hill Brewery, established in 2014 by Sam McMeekin and Charlie Shaw, had accumulated nearly GBP 7 million (USD 9m) in losses since its founding, with reported losses of GBP 1.3 million (USD 1.7m) in 2023. Despite these financial difficulties, the brewery will continue to operate from its existing location, and popular products like Hepcat Session IPA will remain in production.
McMeekin addressed shareholders, acknowledging that without the acquisition, administration was almost inevitable. Challenges such as “industry turbulence, competition, and supply chain pricing pressures” had impeded Gipsy Hill’s attempt to secure an anchor investor during a failed GBP 500k (USD 643k) equity crowdfunding campaign last year. Previously, the brewery had successfully raised GBP 865k (USD 1.1m) at a valuation of nearly GBP21 million (USD 27m) in 2022.
The acquisition values Gipsy Hill at GBP 5 million (USD 6.4m , based on a multiplier of 0.9x the brewery’s projected revenue for fiscal year 2027. McMeekin assured shareholders that they would likely receive deferred consideration for their shares, with payouts expected from Gipsy Hill’s cash flow between 2028 and 2030 once profitability is reached.
The press release accompanying the announcement highlighted the benefits of the acquisition: “Joining Sunrise Alliance Beverages will provide Gipsy Hill with stability and the resources to navigate the evolving market environment.” CEO Richard Mather praised Gipsy Hill, stating, “Gipsy Hill is a fantastic business with excellent beers, strong brands, and loyal consumers. Our union will enable Gipsy Hill to benefit from our group’s collective resources and operational efficiencies, while retaining its autonomy and character.”
McMeekin expressed optimism for the future, saying, “This strategic partnership allows us to keep doing what we do best: brewing exceptional beer for our loyal customers. Sunrise Alliance Beverages shares our vision for quality, customer service, community, innovation, and sustainability, and this partnership will empower us to continue to thrive and innovate.”
This acquisition marks another step in Sunrise Alliance Beverages’ expansion into the craft beer market, following its 2023 purchase of Wild Beer Co and Curious Brewing from Risk Capital Partners. The group, which has evolved from St Peter’s Brewery over the past year, continues to bolster its presence and diversify its offerings in the competitive craft beer industry.