The troubled Black Sheep brewery has been sold to an investment company.

The Masham-based brewery appointed administrators in May, saying it had been hit by the pandemic and rising costs.

The business, which employs around 150 people, said it had been acquired by the Breal Group investment firm.

The brewery said the sale meant it would continue to produce its beers and the deal would protect jobs.

The new Black Sheep Brewing Company would trade as Black Sheep Brewery. A spokesperson said: “This marks the next chapter in the history of Black Sheep as we look to grow the business in a sustainable way. Our team will continue to produce great beers from our landmark brewery in Masham.”

The brewery announced in April that it was considering a sale or merger as a way of attracting new investment. The deal will secure significant local employment and the family-run business’ future growth.

Freeths’ restructuring partner John Jeffreys said: “We are extremely pleased to have supported our client Breal Capital in this acquisition which represents an important addition to its existing portfolio.

“The future of this well-loved brewery has been secured with Breal’s support and we wish them every success.”