Deep Ellum Brewing Sold to Oskar Blues’ Canarchy Collective
DALLAS, TX – Deep Ellum Brewing Company has confirmed that the brewery is joining Oskar Blues Brewing Company under the Fireman Capital-backed Canarchy Craft Brewery Collective.
In 2016, Deep Ellum secured investment from Storied Craft Breweries (SCB), a capital investment group lead by Steve Berg and Adam Lambert to expand the brewery with a new taproom in Fort Worth. When that investment dissolved from the original 56 percent stake in Deep Ellum to only 24.5 percent, the Texas brewery was forced to suspend expansion plans. At $3 million dollars, the cost of the expansion created a dire shortfall from the scaled-back investment of $1 million dollars, but it also left John Reardon, the owner of Deep Ellum, with 72 percent ownership. This allowed Reardon to seek new investment. On Friday, June 8, 2018, it was announced that Fireman Capital acquired the brewery in full for an undisclosed sum.
The new ownership means that Deep Ellum will immediately have access to enough capital to finish the taproom expansion, access to the Oskar Blues production facility in Austin, Texas, and SBC is no longer invested in Deep Ellum, selling their 24.5 percent stake to Fireman Capital. Deep Ellum has become one of the fastest growing breweries in Texas, producing 45,000 barrels in 2017, with 85 percent of that being sold within a 20-mile radius of Dallas.
Reardon has announced that he will take equity in the new company ownership, receiving less cash upfront, saying that: “I am in this thing pretty deep and for the long haul, I really have no intention to go anywhere.”
Deep Ellum joins Perrin Brewing in Michigan, Cigar City Brewing in Florida, Squatters and Wasatch Brewery in Utah, and Oskar Blues Brewing Company in Colorado, North Carolina, and Texas, under the Fireman Capital Canarchy umbrella. Canarchy was ranked as the ninth largest brewery in the United States in 2017, according to the Brewers Association.
For more on the story check out coverage from Brewbound who first broke the news.