Combined companies will produce nearly 500,000 litres of beer a year
Two of Scotland's best known micro-breweries have agreed to merge.
The merger of Isle of Skye Brewery and Isle of Arran Brewery will create a company with combined annual turnover of around £1.2 million, producing nearly 500,000 litres of beer a year.
Gerald Michaluk, managing director of Arran Brewery will take up the role of managing director of the merged businesses which will operate under the name Arran Brewery plc.
The deal is expected to complete early next year.
Isle of Skye brewery was founded by Angus MacRuary 18-years ago and he manages the brewery along with his wife Pam, who is the head brewster.
Angus MacRuary has agreed to swap shares in his business in exchange for shares in the newly formed Arran Brewery plc.
Isle of Arran Brewery was established in 2000 and is run by a father and daughter team Gerald and Veronica Michaluk.
Gerald Michaluk said Arran Brewery plc will look to raise more than £10 million over the next three years to expand production on the two sites, build its own bottling facility on the mainland and to open its own pub chain.
Michaluk announced in September the Isle of Arran Brewery was set to launch the first of three share offers with the aim of raising £3.85 million based on fellow brewer BrewDog's 'equity for punks' scheme.
The wider plan is to raise £10 million over the next three years to fund expansion of the brewery and move into new markets internationally.
Michaluk said the merger with Isle of Skye Brewery will give both companies scale to increase sales both at home and abroad.
He said: “It is a great privilege to be working with Angus and his wife who have such a wealth of experience.
“Each of the existing breweries, at full capacity, should be able to produce around 1,600,000 litres of beer a year providing a combined capacity of some 3,200,000 litres.
“We are planning next year to build a new brew house on Arran which would increase capacity to 16,000,000 litres per annum.
“This production is mainly aimed at the export market and we will be leveraging Angus’s knowledge of exporting Skye beers to the USA and Japan.
“We are aiming to grow the business rapidly over the next three years by expanding sales from Scotland to the rest of the UK and internationally.”