Keg Logistics, a Seaport Capital portfolio company, announced its acquisition of Nashville, Tennessee based Keg Credit, combining two of the leading keg providers in the rapidly growing U.S. craft brewing industry.
Keg Logistics has the largest customer base of any keg management provider in the United States. The addition of Keg Credit will strengthen this position as the company will now serve over 2,000 breweries, cideries, wineries and specialty beverage customers across the United States, Canada and the United Kingdom.
With over 80 years of combined experience in brewing, distribution and keg supply chain management, the Keg Logistics team is uniquely positioned to help its customers thrive in markets throughout North America and Europe. The acquisition of Keg Credit adds to the Keg Logistics service menu and significantly deepens Keg Logistics’ density across the United States.”
“Keg Logistics and Keg Credit are committed to providing a keg solution that has the best interest of the brewer in mind,” said Chris Sapyta, CEO of Keg Logistics and pioneer of the keg management industry. Sapyta added, “Keg Logistics is the only keg management company in the country that can provide kegs via a short-term rental, a lease to own option, a pay per fill keg supply model for long distance markets and export keg sales for brewers in the United States and Europe. The variety of options that Keg Logistics offers will allow the company to meet the needs of brewers from start-up nano-breweries to breweries selling internationally.”
“We are thrilled to now be a part of the Keg Logistics team,” stated Palmer Finger, co-owner of Keg Credit who is joining the Board of Directors at Keg Logistics. “We have a great customer base and wanted to ensure that our Keg Credit family of brewers would be well taken care of. We are confident that the industry knowledge and leadership of Keg Logistics will continue to provide high quality service and kegs to all of our brewers.”
Founded in 2011, Keg Logistics became a portfolio company of Seaport Capital in 2017. Jim Collis, partner at Seaport Capital, added, "This is a perfect example of why we invest in growth-minded companies. When you combine a keen understanding of what brewers need with a team fanatical about customer service, it’s not surprising that you end up with a transformative market leader. We're very excited about what this strategic acquisition will mean for Keg Logistics' future."
Palmer and Robert Finger of Keg Credit will become investors in Keg Logistics following the deal. Willkie Farr & Gallagher LLP of New York City provided legal services to Keg Logistics. W.G. Nielsen & Co and Davis Graham and Stubbs LLP, both of Denver, advised Keg Credit on the transaction. Terms of the transaction were not disclosed.
About Key Logistics
Keg Logistics is a leading provider of keg financing and management services to breweries and wineries globally. Started by industry veteran Chris Sapyta, Keg Logistics enables its customers to maximize their growth and profitability through flexible keg supply options. In addition to keg financing, Keg Logistics also manages domestic and international logistics, including 3PL logistics support. For more information, visit www.keglogistics.com.
About Seaport Capital
Founded in 1997, Seaport Capital invests in middle market companies with recurring revenue business models in the communications, business services and media sectors. Seaport works with talented management teams to create valuable companies that are leaders in their market segments. Seaport’s extensive investing experience enables it to develop successful strategies; its relationships and resources help achieve them. For additional information, visit www.seaportcapital.com.