Prime Highlights
- Ironhill India acquires its bankrupt US namesake, creating a combined group worth about Rs 450 crore.
- The company targets 43 outlets across India and the US by 2030.
Key Facts
- Ironhill India invested $4 million to reopen five profitable US outlets in Pennsylvania and Delaware.
- It plans 27 outlets in India and at least 16 in the US by 2030.
Background
Ironhill India, the country’s biggest microbrewery chain, has acquired and merged with its US namesake, creating a combined hospitality group with revenue of about Rs 450 crore, according to a Reuters report.
The company picked up the Pennsylvania based Ironhill through bankruptcy proceedings, gaining control of the Ironhill brand’s global trademark in the process.
The bankruptcy route let the Indian company select only the profitable US locations rather than absorb loss making ones. Ironhill India co-founder Teja Chekuri said the company avoided outlets running heavy losses and picked only those generating around 20 per cent Ebitda.
Ironhill India currently runs about 10 outlets and plans to grow its combined India and US network to roughly 43 outlets by 2030, targeting 27 locations in India and at least 16 in the US.
The American business had expanded aggressively under its previous owners before running into trouble, and Ironhill India used the bankruptcy process to acquire the brand along with select operating sites.
The company has committed a further $4 million to reopen five US outlets, taking its total investment in the American business to about $7 million. The revived locations span Center City Philadelphia, Hershey, Lancaster and Huntingdon Valley in Pennsylvania, and Wilmington in Delaware. Before its closure, the US business generated close to $27 million in annual revenue.
Co-founder Sree Harsha Vadlamudi said the deal extends well beyond the brand name, adding that revenue and brand value would climb now that Ironhill has a US presence.
The acquisition also hands Ironhill India brewing expertise and operating practices from the mature American craft beer market, which the company plans to adapt for its Indian outlets alongside lessons in labour productivity and automation.
Ironhill director of operations Alexis Lundeen said reviving the US business had brought back around 500 team members and vendors to their jobs and their regular customers. The company intends to expand in the US gradually, adding two to three outlets a year through 2030.
