Boston Beer Company merges with Dogfish Head in $300m deal

Samuel Adams beer maker Boston Beer Company and Delaware-based Dogfish Head Brewery have agreed to merge in a deal worth $300 million.

As part of the deal, which is expected to close in the second quarter, Dogfish Head co-founder Sam Calagione and his family will receive approximately 406,000 shares of Boston Beer stock based on a share price of $314.60.

Dogfish shareholders will also receive $173 million in cash, and it is expected Sam Calagione will join Boston Beer’s board of directors as of 2020.

The deal brings together the second largest craft brewer in the US, Boston Beer, with the 13^th largest, Dogfish Head, according to figures from the Brewers Association. The companies said that together they will be better positioned to compete against the global beer conglomerates while still maintaining the status of an independent craft brewery, as defined by the Brewers Association.

Dogfish Head is expected to record net sales for the full year 2019 of between $110 and $120 million. The firm has approximately 400 employees, produces most of its beer at its brewery in Milton, Delaware, and sells its beer in more than US 40 states. 

Jim Koch, founder and chairman of Boston Beer Company, said: “We believe we are creating the most dynamic and diverse American-owned platform for craft beer and beyond. Dogfish Head has a proud history as a craft beer pioneer with a brand that is beloved by American consumers and highly respected by the industry. Sam and I have stood shoulder to shoulder in some of the defining efforts in craft brewing including the creation of the Brewers Association, the craft beer definition, the craft brewer seal and the creation of the SAVOR food and beer event.

“This combination is the right fit as both Boston Beer and Dogfish Head have a passion for brewing and innovation, we share the same values and we will learn a lot from each other as we continue to invest in the high-end beer category. I am very happy that Sam will join the board of directors at Boston Beer.”

Sam Calagione, founder and brewer of Dogfish Head, said: “Not only are Dogfish Head and Boston Beer two original American breweries, but Jim Koch and I worked hard with other leading craft brewery founders and the Brewers Association to develop and champion what defines independent American brewers.”

The combined company will be led by Boston Beer CEO Dave Burwick. “This is a formidable combination of brands, incredible brewing talent, and leaders who remain 100% focused and committed to the long-term health of our breweries and growing the beer industry,” he said.