craft beer

Bregal Sagemount has made a growth equity investment in Keg Logistics to support the company’s continued expansion.  Keg Logistics has experienced accelerating annual growth for several years and will be using the invested capital to scale its services and expand its market reach.

Keg Logistics is a provider of keg leases to craft breweries and wineries. According to Bregal Sagemount the craft brewing market is expected to double over the next five years with a concurrent increase in the need for kegs. The company is led by its CEO and founder Chris Sapyta and is headquartered in Denver (www.keglogistics.com).

“Keg Logistics is the only keg financing business focused on making the brewer successful,” said Gene Yoon, Managing Partner at Bregal Sagemount. “We have the top management team offering a transformative product to the rapidly growing craft brew market. We intend to invest heavily to enable Keg Logistics to disrupt the market and help craft breweries and wineries around the world thrive.”

“When I launched the keg finance and management space 19 years ago, the craft brewery segment was still in its infancy,” said Mr. Sapyta. “Today the sector has expanded to the point where geographic density makes our “rent to own” model the best long term solution for brewers and wineries of all sizes. Kegs last over 30 years, it just doesn’t make sense for someone to pay “per-fill fees” or rent forever.”

Bregal Sagemount makes control and non-control investments of $15 million to $150 million in companies active in the following sectors: software, digital infrastructure, healthcare IT and services, business and consumer services, financial technology and specialty finance. The firm makes both equity and junior debt investments and has $650 million in committed capital.  Bregal Sagemount is based in New York (www.sagemount.com).

© 2015 PEPD • Private Equity’s Leading News Magazine • 11-17-15

The Riverside Company has made an investment in Uinta Brewing Company, a craft beer maker. The investment by Riverside will be used to provide support and resources to sustain the company’s growth momentum over the coming years.

Uinta Brewing Company was founded by Will Hamill in 1993 and has grown to be one of the top 50 craft brewers in the United States by volume.  Uinta recently completed an $18 million brewery expansion and will continue to invest in expanding its production capacity and distribution footprint. In 2013, the brewery produced nearly 60,000 barrels of beer and 2014 is expected to be another year of record growth.  Uinta’s name is derived from The Uinta Mountains, the only major east-west running mountain range located in the continental US.  The company is headquartered in Salt Lake City (www.uintabrewing.com).

“We’re especially excited to partner with a strong and respected brand like Uinta,” said Riverside Managing Partner Loren Schlachet. “The craft beer movement is expanding significantly and Uinta has enormous growth potential in both new and existing markets.”

Mr. Hamill will remain as Uinta’s CEO and significant owner and will continue to lead the brewery as it accelerates its growth and presence in the craft beer market.

“I am deeply committed to the Uinta culture, our team, our consumers, and our distribution partners. This investment from Riverside will allow us to expand our distribution, enhance our production capacity, continue our new beer development and increase our efforts in getting the word out about Uinta’s fantastic beer,” said Mr. Hamill. “In considering our options for growth capital, I spoke with many smart people as it was critical to me that our new partner truly understands craft beer and appreciates what makes Uinta so special. I wanted to make sure that we could continue to build our brand while maintaining the culture and values that have made Uinta the company it is today. I’m excited to embrace this support from Riverside. Their resources and business acumen, combined with our passion and brewing knowledge will ensure continued momentum for years to come.”

“With its fantastic beer and branding, Uinta has already won many fans throughout the country,” said Riverside Vice President Steve Rice. “We’re delighted to be part of the next chapter in Uinta’s growth story, and we look forward to working with Will and his outstanding team.”

Working with Mr. Schlachet and Mr. Rice on the transaction for Riverside was Senior Associate Kevin Kumar. Origination Principal Jeremy Holland sourced the transaction for Riverside. Vice President Dan Haynes worked on financing the transaction for the firm.

The Riverside Company is a private equity firm focused on the smaller end of the middle market (“SEMM”). Riverside specializes in investing in SEMM companies (those valued up to $250 million) and partners with management teams to build companies through acquisitions and value-added growth. Since 1988, the firm has invested in more than 345 transactions with a total enterprise value of more than $6 billion. The firm’s current portfolio includes more than 70 companies. The Riverside Company is headquartered in New York with additional offices in Atlanta, Chicago, Cleveland, Dallas, Los Angeles, San Francisco, and London (www.riversidecompany.com).

Riverside partnered with Golub Capital for financing and was advised by Jones Day, Deloitte and West Monroe Partners.

2014 PEPD • Private Equity’s Leading News Magazine • 8-29-14