Craft brew restaurant chain HopCat has been acquired by Chicago-based private equity firm Uncommon Equity.
Financial terms of the transaction were not disclosed.
The announcement comes five years after HopCat parent BarFly Ventures declared bankruptcy because of increased competition and the saturated craft beer market, both of which were made worse by the COVID pandemic. The company was sold for $17.5 million to lenders Congruent Investment Partners and Main Street Capital.
Founded in 2008, HopCat is known for its rotating craft beers on tap—particularly the local and regional selections—along with its Cosmik Fries, burgers, and other typical pub menu items.
HopCat has 12 locations across Michigan, plus one in Lincoln, Nebraska. The acquisition also includes Stella’s Lounge, a retro-arcade bar and restaurant concept based in Grand Rapids, Michigan.
The brands are led by CEO Craig Stage, who worked as an assistant manager more than a decade ago before advancing to become a general manager, area director, and then VP of operations.
“We see this transition not as a change of direction, but as a continuation of what HopCat does best – bringing people together,” Stage said in a statement. “We’re excited to partner with Uncommon Equity and their experienced Operating Partners to invest in the team, new locations, and innovation while preserving the local and Midwest hospitality that has always defined the brand.”
Uncommon Equity is familiar with the food and beverage sector, with investments in Canadian franchise group Redberry Restaurants (Burger King, Taco Bell, and Jersey Mike’s) and Rackson Restaurants (Burger King and Dave’s Hot Chicken).
As part of the transaction, Uncommon Equity cofounder and CEO Dan Kipp will join HopCat’s board of directors, along with current executive chairman Ned Lidvall and Uncommon Equity operating partners Gary Graves and Rob Selati. In addition to serving on the board, Selati will be a strategic investor via his investment vehicle Saxonwold Capital.
“We are excited to be acquiring HopCat at this pivotal point in time and to partner with Chairman Ned Lidvall, CEO Craig Stage, CFO Andrew Woodruff and their leadership team to carefully grow the HopCat brand while continuing their maniacal focus on great, value-priced food served in a friendly, neighborhood atmosphere,” Kipp said in a statement.
HopCat plans to invest in “menu innovation, guest experience, and community partnerships to fuel its next phase of growth,” according to the news release.
