Brewdog to be bought by Tilray Brands in £33 million deal

The US brewer and cannabis group Tilray Brands is readying to acquire parts of the Brewdog business in a deal understood to be in the region of £33m.

The acquisition includes the global brand and related intellectual property, the UK brewing operations and 11 strategic brewpubs in the UK and Ireland, for a total consideration of £33 million. Tilray is separately negotiating to acquire certain Brewdog assets in the US and Australia.

As the deal unfolds

The news hits as Brewdog having closed its bars today as it anticipated finalising the deal in a move that follows BrewDog having hired AlixPartners last month to seek out a buyer or new situation for the struggling business.

Speaking about the acquisition, Tilray brands chairman and CEO Irwin D. Simon said: “Brewdog is one of the most iconic, mission-driven craft beer brands in the UK. It helped redefine modern craft beer through bold innovation, fearless creativity and an unwavering commitment to great beer. What makes Brewdog truly special has always been its brewers, its brewpubs and its passionate community of beer fans. As we begin a new chapter for this great brand, our priority is to refocus Brewdog on the craft beer excellence that made it beloved in the first place and strategically invest to return the operations to profitable growth. Brewdog’s future is bright, and we are committed to ensuring the brand continues to lead and inspire the global craft beer movement.”

Under the terms of the transaction, Tilray paid £33 million in exchange for Brewdog’s worldwide intellectual property, UK brewing operations and a portfolio of 11 brewpubs including: Birmingham, Canary Wharf, Dogtap Ellon, Dublin, Edinburgh DogHouse, Lothian Road, Manchester, Paddington, Seven Dials, Tower Hill, and Waterloo.

The brewing and related operating assets are expected to generate annual net revenue of US$200 million and adjusted EBITDA of US$6 – US$8 million.

Added to this, the acquired business is expected to become cash flow positive beginning in fiscal 2027 as integration initiatives and operational efficiencies are realised. The proposed US and Australia components of the acquisition will be subject to a separate purchase agreement to be negotiated by the parties and is expected to be finalised and closed in approximately 30 days.

Simon explained: “Tilray’s management brings operational and strategic expertise, a diversified global beverage infrastructure and a disciplined investment approach needed to unlock Brewdog’s next phase of growth.”

He added: “In addition, my team and I have significant experience in the UK market where we previously built an US$1.5 billion consumer packaged goods business at my prior company with beloved brands, including Ella’s Kitchen, Hartleys, Tilda, New Covent Garden and Linda McCartney. With the Brewdog acquisition, our total global beverage platform is expected to grow to US$500 million in annual revenue, creating one of the largest diversified craft beverage platforms globally. Through this expanded platform, we see significant growth opportunity for Brewdog through broader distribution and the ability to invest back into brand and innovation, while introducing Tilray’s complementary beverage brands into international markets. On a combined basis, we expect Tilray’s diversified global business to reach US$1.2 billion in annualised revenue.”

Rumours had recently circulated about Brewdog’s troubles following speculation that former CEO James Watt planned to return to take over the company, along with Brewdog’s worker’s union Unite Hospitality staging a protest last week over the toll a sale would take on staff members.

Brewdog, which was originally set up in 2007 by James Watt and Martin Dickie, has 21% of the business also owned by US private-equity firm TSG Consumer Partners after it invested in the business back in 2017. One fear from Brewdog’s crowdfunders, known as Equity Punks, was that their shares would be “worthless” once the business has been sold.

Brewdog also recently divulged that it had been forced to close down its distillery in Port Ellen and has been facing fiscal challenges of late as seen in its figures. For instance, in 2024,Brewdog reported a loss of £34.1m (US$46.6m) compared to £62.7m the previous year.

Tilray Brands

Tilray Brands, which was founded in 2013, is listed on the Nasdaq and cannabis makes up approximately 30% of its annual sales and yet also makes pharmaceutical and hemp-based products.

In 2023, Tilray bought up a raft of brands in the US from AB InBev and in 2024 struck a deal with Molson Coors to take on four of its breweries. Last month, Tilray also revealed plans to brew in the US for Carlsberg. As well as its involvement in brewing, Tilray also distributes both beers and spirits across Europe.

As part of the new buyout deal. Brewdog’s original founders James Watt and Martin Dickie will reportedly remain as shareholders, despite Watt having stepped down as CEO in 2024 and Dickie departing from the business in 2025.

In October, Brewdog revealed it would be cutting jobs across its business, giving rise to a wave of unrest across the company which has since led to demos.

db has reached out to Brewdog for further comment, but so far the business has remained quiet on any further details regarding the acquisition.

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