USA – The Boston Beer Company has signed a definitive merger agreement with Delaware based company, Dogfish Head Brewery in a transaction valued at approximately US$300 million.
The merger looks to explore opportunities in the craft beer segment, combining expertise from two leading brewers.
The new entity will possess more than half a century of Craft brewing expertise, a balanced portfolio of leading beer and “beyond beer” brands at high end price points, and industry leadership in innovation and quality.
It also combines Boston Beer’s craft beer portfolio with Dogfish Head’s award-winning portfolio of IPA and session sour brands.
The combined company will operate as an independent craft brewery and led by Boston Beer CEO, Dave Burwick, representing less than 2% of beer sold in the United States.
“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,” said Dave Burwick.
“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 organization to bring it to market.
“We expect that we’ll see more consolidation in the Craft industry over time, and we’ll be in the best position to take advantage of those changes.”
Jim Koch of Boston Beer and Sam Calagione of Dogfish Head will continue to lead brewing innovation for the newly combined company.
Following the close of the transaction, Sam and Mariah Calagione, Dogfish Head’s two co-founders will be become the largest non-institutional shareholders after Jim Koch.
Sam Calagione will join Boston Beer’s board of directors and Dogfish Head’s workers will join the Boston Beer team.
Founded 23 years ago, Delaware-based Dogfish Head established one of the first Craft distilleries in America, Dogfish Head Brewings & Eats brew pub, Chesapeake & Maine restaurant, and the Dogfish Head Inn.
The newly combined company will maintain a significant presence in Delaware.
“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,” said Jim Koch.
“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.”
