Boston Beer Acquiring Dogfish Head Brewery


BOSTON —The Boston Beer Co. announced this month it is acquiring Dogfish Head Brewery in a cash and stock deal worth about $300 million.

Boston Beer, maker of the Samuel Adams line of beers, will pay shareholders of Delaware-based Dogfish Head $173 million in cash and 406,000 shares of Boston Beer stock worth about $314 per share, according to a press release. Additionally, Dogfish Head founder Sam Calagione will join Boston Beer’s board of directors.

“We believe we are creating the most dynamic and diverse American-owned platform for craft beer and beyond,” stated Jim Koch, founder and chairman of Boston Beer. “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. 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.”

Boston Beer, the country’s second largest craft brewer, shipped 4.3 million barrels last year and had net revenue of $995.7 million, according to the company’s earnings report. Many of its beers are brewed at the former Hudepohl-Schoenling brewery in Cincinnati, Koch’s hometown, and the company opened a tap room there last year.

Founded 23 years ago, Dogfish Head is on pace to sell nearly 300,000 barrels this year, according to a press release, with net sales expected to be between $110 million and $120 million. Its portfolio, which includes the continually-hopped 60, 90 and 120 Minute IPAs and a sour beer program led by SeaQuench Ale, is available in more than 40 states.

The combined company will maintain its status as an independent craft brewery, defined by the Brewers Association as producing 6 million or fewer barrels of beer per year.

The transaction is expected to close late in the second quarter, subject to customary closing conditions.

“This is a formidable combination of brands, incredible brewing talent and leaders who remain 100 percent focused and committed to the long-term health of our breweries and growing the beer industry,” stated Boston Beer CEO Dave Burwick. “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.”

In addition to Samuel Adams, Boston Beer’s portfolio of brands includes Angry Orchard Hard Cider, Twisted Tea, Truly Hard Seltzer, Marathon Brewing Co., Wild Leaf Hard Tea and Tura Alcoholic Kombucha as well as several other craft beer brands brewed by A&S Brewing, the company’s craft beer incubator.