Kings & Convicts Brewing has signed an agreement with Constellation Brands to acquire Ballast Point Brewing and a number of its facilities and brewpubs.

Lead Investor in Ballast Point Sale to Kings & Convicts Revealed

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Many have wondered how a nano brewery such as Kings & Convicts Brewing could acquire a brewery substantially larger like Ballast Point Brewing Company. Well, it pays to have deep pockets. The truth is, Kings and Convicts is essentially a startup that’s funded by private investors who love craft beer and have always loved Ballast Point. And their plan was to have this transaction be viewed as an expansion plan for Kings and Convicts.

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The Wine Group Chairman Backs Kings & Convicts in Ballast Point Purchase

So who are these investors? Not all are known yet but Richard Mahoney, the chairman of the board of The Wine Group, is the lead investor in the Chicagoland craft brewery’s acquisition of Ballast Point from Constellation Brands, according to the Chicago Tribune.

“He’s backed me and I’ve made him money — he’s also made a lot of money elsewhere — but he’s backed me since 2003,” Kings & Convicts co-founder and CEO Brendan Watters told the Tribune. Mahoney is also the largest stakeholder in Kings & Convicts.

The Wine Group’s 25 wine brands include Cupcake, Franzia, Flip Flop and Benziger.

Since Constellation Brands announced the deal to unload Ballast Point, industry observers have pondered the sale price for the San Diego craft brewery that sold for $1 billion in cash just four years ago. Subscription-based newsletter Beer Business Daily reported that Credit Suisse analyst Kaumil Gajrawala pegged the transaction at under $100 million. If true, that’s an astonishingly loss for Constellation.

According to financial services firm Cowen, Ballast Point sales are down 32% year-to-date.

Read more about the Ballast Point sale here.

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