Boston Beer and Dogfish Head sign $300m merger agreement

Boston Beer Company has signed an agreement to acquire Dogfish Head Brewery in a definitive merger agreement valued at $300m.

Boston Beer intends to fund the transaction with cash and credit. Upon completion, the two companies are expected to create a platform for craft beer. The merged entity will operate as an independent craft brewery.

Dogfish Head Brewery founder and brewer Sam Calagione 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.

“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.”

Sam Calagione is expected to join Boston Beer’s board of directors beginning next year.

Boston Beer CEO Dave Burwick said: “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.

“United, we will have the highest quality, most distinct, high-end portfolio, from both a price-point and product perspective with the top-ranked sales organisation to bring it to market.”

Subject to customary closing conditions, the deal is expected to close late in Q2 2019.