The Black Sheep Brewery acquires York Brewery

02-Jan-2019 - Last updated on 02-Jan-2019 at 09:45 GMT

Deal to toast: Black Sheep Brewery MD Rob Theakston (left) and and chairman Andy Slee (right) celebrate their acquisition

North Yorkshire-based Black Sheep Brewery has acquired operator and brewer York Brewery for an undisclosed sum.

York Brewery entered administration on Thursday 13 December 2018, together with its parent company, Mitchell’s of Lancaster.

Black Sheep acquired the £21m-turnover York Brewery and brands as well as four outlets in the business as part of the deal.

The pubs in the deal are the Last Drop Inn, York; Mr Foley’s Tap House, Leeds; the Tap Room, York; and the Three Legged Mare in York.

The acquisition, which was facilitated by joint administrators Steven Muncaster and Sarah Bell from Duff & Phelps, builds on a positive year for Black Sheep, which returned to profit in 2018.

Future strategy

Black Sheep Brewery chairman Andy Slee said: “This acquisition fits perfectly with our strategy of developing our presence in our Yorkshire heartland and owning pubs.

“Entering administration was worrying for the team at York Brewery, but our deal offers some comfort that its successful brand can be maintained and the pubs can continue to operate.

“York Brewery complements our strong brands and by acting quickly we have been able to provide a good outcome for both organisations.”

Black Sheep Brewery managing director Rob Theakston outlined how the new acquisition means the company can extend into retail.

Journey into retail

He said: “Over the past 26 years we have produced some of the UK’s most iconic, award-winning beers and the purchase of another longstanding brewery will secure the future of another well-respected Yorkshire brand.

“It also starts our journey into retail, which was announced at the AGM in September. We are delighted with the acquisition.”

The plethora of issues that forced York Brewery into administration were highlighted by Duff & Phelps managing director Steven Muncaster.

He added: “Despite being a popular destination for locals and tourists, York Brewery unfortunately continued to face cash-flow pressures, ultimately resulting in it being placed into administration.

“However, we are delighted to have secured a sale for York Brewery, which was especially pleasing so close to Christmas”