Boston Beer Co. and Dogfish Head Craft Brewery announced on Thursday that the two beer companies will merge. The deal is valued at approximately $300 million, according to a press release.
Although announced as a “merger,” the companies will operate under Boston Beer (NYSE:SAM), and be led by Boston Beer CEO Dave Burwick.
Dogfish Head co-founder Sam Calagione will join Boston Beer’s board of directors in 2020.
The entity will maintain its status as an independent craft brewery, as per the Brewers Association’s definition, the announcement said. It also added, almost apologetically, that its combined offerings will “still represent less than 2 percent of beer sold in the U.S.”
Nevertheless, the beer community is shook.
“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,” Jim Koch, Boston Beer founder and chairman, said in a press release.
He continued, “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.”
Calagione said, “This merger better positions Dogfish Head and our co-workers to continue growing within [the craft brewer] definition for many years to come.”
He added that he and wife and co-founder Mariah Calagione will reinvest the proceeds of the deal back into the combined entity, and that they intend to “devote a percentage of the Boston Beer stock … to establishing a foundation and funding various local charitable programs.”
The transaction is expected to close late in the second quarter 2019.
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