Chapel Down raises £18.5m, marking a ‘new chapter of growth’
Chapel Down has completed £18.5 million fundraising by issuing new shares, and it hopes to raise around £1.4 million more with the help of existing shareholders.
The English wine, beer and spirits producer said it has raised £18.5 million through the issue of 37,060,000 new shares at 50p each.
The funds raised will be used to enable the company to “satisfy the ever-increasing demand for its award-winning products”, and more specifically it said the proceeds would be used:
* Firstly to grow the wine business by securing new vineyard land of around 500 acres, and managing that land to fruition, as well as building new stock.
* Secondly, it aims to invest in the sales and marketing of Chapel Down and Curious brands and further strengthen the company’s “world class” team, to support future growth ambitions.
* Thirdly, it hopes to accelerate the growth of its beer business including the fit out of the shop, bar and visitor experience at its Ashford brewery.
* For its fourth point it said it wishes to build a strong position in the spirits market through the recently launched gin and vodka brands.
* And finally it hopes to enable the company to be best places to take advantage of acquisition and consolidation opportunities that may arise.
Chapel Down said it also intends to launch an Open Offer for existing shareholders to “continue their journey” with Chapel Down and take part in the next stage of the company’s development. The Open Offer, which will launch on 19 December, will also be at 50p per share. The proceeds from this will be used for general working capital purposes and corporate M&A activity.
As a result of the fundraising the company provided a trading update which shows it delivered consistent growth over the last six years with a 25% annual growth rate in sales. Turnover is expected to be at or above £11.6 million for the current financial year, in line with expectations.
The company expanded its senior team this year by hiring Gareth Bath from Brewdog and Mark Harvey from LVMH to drive the beer, wines and spirits businesses.
Frazer Thompson, ceo of Chapel Down, said: “This is a transformational moment for Chapel Down. The fundraising enables us to significantly invest in the business for further growth and to meet the increasing demand for our products. We welcome the new investors in our company and hope that many of our existing shareholders will take part in the open offer and continue their journey with Chapel Down.
"This marks the opening of a new chapter of growth for Chapel Down. With an outstanding team and world class products, we will look to fully capitalise on our position as the UK’s most exciting drinks company.”