Dogfish Head Brewery To Merge With Boston Beer In $300M Deal

BOSTON — The Boston Beer Company and Dogfish Head Brewery today announced that the companies are merging in a $300 million deal.

Dogfish Head opened as the smallest American craft brewery 23 years ago and grew into a top-20 craft brewery and has won awards throughout the years including Wine Enthusiast's 2015 Brewery of the Year and the James Beard Foundation Award for 2017 Outstanding Wine, Spirits, or Beer Professional. The Delaware-based company's family of beers includes the continually-hopped 60, 90, and 120 Minute IPAs, and sour beer program led by SeaQuench Ale.

It's team of some 400 employees, including owner founders will join the Boston Beer Company, owned by Newton resident Jim Koch.

Koch started his company in 1984 with an old family recipe. He then named the flagship brew Samuel Adams Boston Lager in recognition of one of our nation's founding fathers, a revolutionary man of independent and pioneering spirit. His company also went on to make Angry Orchard Hard Cider, Twisted Tea, Truly Hard Seltzer, Marathon Brewing Company, Wild Leaf Hard Tea and Tura Alcoholic Kombucha as well as several other craft beer brands brewed by A&S Brewing.

The combined company, still named Boston Beer Company, will maintain its status as an independent craft brewery, and still represent less than 2 percent of beer sold in the United States, according to the release. Sam Calagione will join Boston Beer's board of directors in 2020.

"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 Koch in a release. "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."

The transaction is expected to close late in the second quarter of 2019, according to a release. Sam Calagione and his family will receive some 406,000 shares of Boston Beer stock based on a share price of $314.60. Dogfish Head shareholders will also receive $173 million in cash, most all of which is for the benefit of Dogfish Head's financial investors, according to the announcement.

"Mariah and I believe so much in the future of our merged companies that we are all in, and personally we're reinvesting nearly all of the proceeds back into the combined entity,"said Sam Calagione, founder and brewer of Dogfish Head in a statement. "We're also proud to announce that we intend to devote a percentage of the Boston Beer stock that we receive to establishing a foundation and funding various local charitable programs."

Patch reporter Jenna Fisher can be reached at Jenna.Fisher@patch.com or by calling 617-942-0474. Follow her on Twitter and Instagram (@ReporterJenna).