Boston Beer to acquire Dogfish Head Brewery in a $300 million deal

KEY POINTS

  • The deal would put Sam Adams beer and Dogfish Head’s 60-, 90- and 120-Minute IPAs and sour beers all under the same company.
  • The transaction is expected to close towards the end of the second quarter of 2019 and Boston Beer will be consolidating Dogfish Head’s results into its financial results at the end of the second-quarter of 2019.
  • The combined company will be led by Boston Beer CEO Dave Burwick.

Sam Adams brewer Boston Beer Company has signed on to buy Dogfish Head Brewery in a merger agreement valued at approximately $300 million, the companies announced Thursday.

The deal would put Sam Adams beer and Dogfish Head’s 60-, 90- and 120-Minute IPAs and sour beers all under the same company and combine two high-end craft breweries.

The transaction is expected to close towards the end of the second quarter of 2019. Boston Beer will be consolidating Dogfish Head’s financial results into its quarterly report at the end of the second quarter of 2019.

The combined company will be led by Boston Beer CEO Dave Burwick. Both founders, Jim Koch of Boston Beer, and Sam Calagione of Dogfish Head, will be involved in the newly-combined company. The new company will also maintain a significant presence in Delaware, home of Dogfish Head.

Sam and Mariah Calagione, founders of Dogfish Head, will take nearly all of their merger consideration in the form of Boston Beer stock, becoming the largest shareholders in the company after Jim Koch. They will receive approximately 406,000 shares of Boston Beer stock, based on an agreed upon share price of $314.60.

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