Dogfish Head and Boston Beer Announce NPR Merger

Two large craft beer companies join forces.

Dogfish Head Brewery and The Boston Beer Company – the maker of Samuel Adams Boston Lager – announced Thursday that they have entered into a merger agreement. The transaction, expected to be completed in the second quarter of this year, is valued at approximately $ 300 million in cash and stock.

The founders of the companies stated that the merger would allow craft brewers to better position themselves against the competition in a sector in full consolidation. The giants of the industry have been acquiring smaller breweries. For example, AB InBev (Anheuser-Busch) now owns Goose Island Beer Company and Golden Road Brewing.

"More than a dozen of our peers have sold to international conglomerates, others have come together via platforms gathering a handful of craft breweries," said Dogfish Head founders Sam and Mariah Calagione. "Although none of these strategies appealed to us, we realized that Dogfish Head would be a stronger company with the support of our friends from Boston Beer, and vice versa."

Boston Beer founder Jim Koch said he found a similar spirit to Sam Calagione. "Our commitment to defend and preserve the American independent craft movement is just as important as our passion for brewing," he wrote.

Koch founded her business in 1984 and since then she has grown to include brands such as Angry Orchard Hard Cider, Twisted Tea and Truly Hard Seltzer. Dogfish Head, based in Delaware, opened 23 years ago. She is known for her IPA and sour beers, often brewed with unusual ingredients.

Both companies are defined as craft brewers by the Brewers Association, which means that they are independent and produce less than 6 million barrels of beer per year. By 2018, the Boston Beer Company was the second largest craft beer company in the country in terms of sales volume, while Dogfish Head was 13 years old.^th.

Companies say they will retain their status as independent artisanal brewers.

In a statement, the companies said Dogfish Head is expected to sell close to 300,000 barrels this year, which would indicate "one-digit high growth over the previous year." Boston predicts that "the transaction will be neutral to slightly accretive in 2019 and will not have a significant impact on diluted earnings per share for the 2019 financial year."

Sam and Mariah Calagione will use almost all the proceeds of the merger in the merged company. Sam will join the Boston Beer Board of Directors in 2020. Dogfish Head's shareholders are also expected to receive $ 173 million in cash. The amalgamated company will be headed by Boston Beer's current managing director, Dave Burwick.