The recent online auction of assets from a 30-barrel, semi-automated brewhouse in Eureka by Tiger Group and Schneider Industries generated proceeds that were 15% above the sale partners’ expectations.
In all, the auction attracted 236 registered bidders from across the United States and seven foreign countries. Prospective buyers for the equipment on offer included breweries, distilleries, wineries, food & beverage manufacturers, candle makers, and bottling companies.
By the time bidding closed on June 17, the assets from the former Booth brewery were purchased in piecemeal by 46 buyers hailing from California, Oregon, Idaho, Montana, Utah, Texas, Oklahoma, Alabama, and Georgia—including five local companies from Eureka. Tiger and Schneider conducted the sale on behalf of the facility’s landlord, which retained all the assets following the December 2020 closure of the 20,000-square-foot brewery. The facility operated out of three warehouse buildings on the site.
“The landlord, which ultimately elected to market the property to other uses as opposed to getting a turnkey buyer, was very pleased with the recovery realized through the auction,” said John Coelho, a Senior Director with Tiger Commercial & Industrial. “In particular, we saw significant interest in the facility’s Wild Goose, 16-oz. canning line, which drew 15 bidders. Three individual bidders prevailed, acquiring the line in component pieces.”
He noted that Tiger and Schneider also had spirted bidding on the auction’s 20-plus stainless steel tanks, which ranged in size from 30 to 60 to 90 barrels, and went to multiple buyers. “All process assets were bought,” Coelho said, adding that unsold items were limited to older compressors, an air dryer, and a boiler.
Assessing the outcome, Josh Bussman, VP Investment Recovery at Schneider Industries, commented: “This sale’s success was due, in part, to a comprehensive marketing effort that utilized multiple platforms to target existing breweries, distilleries and West Coast wineries, as well as start-up companies.”