Boston Beer, maker of all things Samuel Adams and one of the pioneers of the craft beer movement, has signed an agreement to acquire another brewery beloved by craft beer fans from coast to coast.
Dogfish Head Brewery, the company that helped bring IPA to the forefront with its 60, 90, and 120 Minute varieties, is about to become part of Boston Beer. The deal, valued at around $300 million, will close sometime in the second quarter of 2019.
Sam and Mariah Calagione, the primary owners of Dogfish Head Brewing, will receive approx. 406,000 shares of the publicly held Boston Beer stock. Dogfish Head shareholders will receive a total of $173 million in cash.
Boston Beer founder Jim Koch says the merger is in the best interests of both companies and furthers each breweries core values.
“We believe we are creating the most dynamic and diverse American-owned platform for craft beer and beyond,” said Koch. “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. He is a tremendous friend, innovator and brewer, and I could not be more excited to work together with him for many years to come,” Koch added.
Sam Calagione chimed in with similar sentiments, adding that he and his wife Mariah plan to focus on charity once the deal is finalized.
“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,” Calagione stated. “This merger better positions Dogfish Head and our co-workers to continue growing within this definition for many years to come. In fact, Mariah and I believe so much in the future of our merged companies that we are all in, and personally we’re reinvesting nearly all of the proceeds back into the combined entity. We’re also proud to announce that we intend to devote a percentage of the Boston Beer stock that we receive to establishing a foundation and funding various local charitable programs,” said Calagione.
Thanks for sharing this wonderful piece of information online.
Hi Bryan, thanks for this great post! I’m curious what the future will bring for the merged beer companies.
The craft beer community is going to watch this closely. Jim Koch and Sam Calagione have both worked their tails off to promote craft beer and both are highly skilled and knowledgeable at running this type of business. I’m hopeful that the synergy of these two companies will prove beneficial to all.