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Boston Beer Co. Acquires Dogfish Head Brewery for $300 Million

May 10, 2019
Maker of Sam Adams beer will add IPA-heavy Delaware craft brewer.

Boston Beer Co., maker of the Sam Adams brand, will pay the equivalent of about $300 million to acquire Milton, Del.-based craft brewer Dogfish Head Brewery.

The deal involves Dogfish Head shareholders, most of them financial investors, receiving $173 million in cash. Dogfish founder Sam Calagione and his family will receive approximately 406,000 shares of Boston Beer stock based on a share price of $314.60.

Sam and Mariah Calagione will collectively become the largest non-institutional shareholders after Boston Beer founder and chairman Jim Koch following the close of the transaction. Sam Calagione also will join Boston Beer’s board of directors.

Dogfish Head, in business 23 years, specializes in IPA and session sour varieties of beer.

Dogfish Head is on pace to sell $110-120 million in 2019. Despite some small acquisitions, Boston Beer's sales have been dropping for at least three years and last year were $863 million. In addition to Sam Adams beers, the company now offers products such as Angry Orchard hard cider, Truly Hard Seltzer and Twisted Tea.

They made it clear the combined company will maintain its status as an independent Craft brewery, as defined by the Brewers Assn. The combined company will be led by Boston Beer CEO Dave Burwick.

The company "will maintain a significant presence in Delaware," the statement said, without elaborating.

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