Craft breweries have been selling for a substantial premium these days, but when your brewery is in the process of a bank foreclosure, a potentially profitable business can often be purchased for a bargain price.
Smuttynose Brewing, arguably the best- known brewery based out of New Hampshire, was auctioned off on Friday, March 9, 2018. The winning bid was from Provident Bank in the amount of $8.25 million. Provident president Chuck Withee says his bank plans to turn around and sell the business once they find a buyer ready to bring new life back to the brewery, a mainstay of the New Hampshire beer scene for more than 20 years.
“The Provident Bank knows full well what a strong brand Smuttynose is, and we feel certain the right investor will come along and continue to grow and strengthen the brand,” said Withee.
Smuttynose was founded by Peter Egelston and Joanne Francis in the mid 1990’s, during the first wave of craft beer expansion. Things were going well financially during most of this time and Egelston is confident that Smuttynose will survive.
“We are looking forward to working with The Provident Bank to keep brewing our award-winning beers. For 24 years, we had the privilege of creating and running a company that employs a devoted group of people and produces amazing craft beer. Looks like we’ll continue to do that for a while longer,” said Egelston.
Smuttynose co- founder Joanne Francis emphasized the emotional roller coaster she and others have experienced over the past few months, but also voiced her optimism.
“The outpouring of support and encouragement from all of our incredible staff, community and friends has kept our hearts full and our purpose clear. We are excited that Provident Bank is committed to a very bright future for Smuttynose,” Francis said in a statement.
According to information provided by Smuttynose spokesperson Barbara MacLeod, the brewery generates over $10 million in annual revenues. The brewery will remain open during the ownership transition.
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