ACABL provided a seven-figure funding package, with the structured facilities including a receivables finance facility, property term loan and a cashflow loan.
Having developed a multi award-winning beer brand, the deal sees investor Mark Hill increase his commitment to the future of Salopian Brewery alongside managing director Trevor Hourican, with continued support and ownership from Wilf Nelson.
Founded in 1994 as Snowdonia Brewery by Martin Barry at his pub in North Wales, it relocated to the village of Hadnall on the outskirts of Shrewsbury a year later.
It was subsequently renamed Salopian, which is the historic name for Shrewsbury, and in 2004 Barry left the business and Hill became a partner.
The purpose-built brewery is adjoined by a taproom and shop, while in 2021, Salopian Brewery commissioned its first canning line to work alongside the bottling line.
Today, kegs, cans and bottles complement its traditional yet eclectic range of cask ales.
‘A really significant deal’
Commenting on the completion of the management buyout, Hourican said: “ACABL has provided a springboard for the next exciting chapter in Salopian’s growth story, enabling a seamless transition of ownership by releasing cash for our founding shareholders.
“This is a really significant deal as it 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. We will continue to diversify our offerings through further investments in canning lines and direct-to-consumer channels.”
Andrew Rutherford, ACABL commercial director, added: “We are thrilled to have provided flexible funding support for the management buyout at Salopian Brewery. The key to successful management buyout 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.”
Advisory firm Alinea Corporate Finance also played a key role in navigating the complex process of securing Salopian Brewery’s next phase of growth.
Describing the process, Alinea Corporate Finance director Oliver Wadlow said that ACABL had been very adaptable throughout and had shown a “willingness to lend significantly against property assets”.
Wadlow continued: “Having worked so closely with the shareholders to achieve this deal, I couldn’t be happier with the outcome for all involved. Salopian Brewery is a key part of the Shropshire food and beverage landscape, so I’m immensely proud to be a part of securing the next stage of its growth through this deal.”
In other news, pre-tax profits at Tesco approached £2.3bn during the 12 months to 24 February 2024, the retailer’s preliminary results have revealed.
