The Boston Beer Company acquired Dogfish Head Brewery (Dogfish Head Holding Company) for approximately $300 million (approximately $173.0 million cash + 427,096 restricted Class A shares), a transaction completed in July 2019, structured as cash and stock (combination). The deal was a Merger.
Dogfish Head Brewery (Dogfish Head Holding Company) operates in Craft beer & 'beyond beer', is based in Milton, Delaware, USA. Boston Beer merged with Dogfish Head Brewery, the Milton, Delaware craft brewer founded in 1995 by Sam and Mariah Calagione and known for its IPAs and 'off-centered' sour and experimental beers. Under the May 8, 2019 merger agreement, Dogfish Head Holding Company merged into Boston Beer's subsidiary Canoe Acquisition Corp. for aggregate consideration of roughly $300 million - about $173.0 million in cash plus 427,096 restricted Class A shares (around $128 million of stock at signing, priced off a 10-day volume-weighted average of $314.60 per share). Structured as a tax-free reorganization, the deal turned Dogfish Head into a wholly owned subsidiary and kept the combined business independent under the Brewers Association craft definition.
Management framed the merger as creating the most dynamic American-owned platform for craft beer and 'beyond beer,' pairing Boston Beer's craft portfolio and sales organization with Dogfish Head's award-winning IPA and session-sour brands so the combined company could compete more effectively at the high end of the U.S. beer market against far larger global conglomerates while retaining independent craft status.
Award-winning, founder-led craft brand strong in IPAs and 'beyond beer' innovation, complementary to Boston Beer's Sam Adams, Truly, Twisted Tea and Angry Orchard portfolio. Combined high-end portfolio and top-ranked sales organization; shared brewing innovation under two founder-brewers (Jim Koch and Sam Calagione). Operated as a wholly owned subsidiary (Dogfish Head) Per the July 3, 2019 closing 8-K (Item 8.01): at closing Boston Beer entered employment agreements with Sam and Mariah Calagione; Sam Calagione was appointed an officer (Founder and Brewer, Dogfish Head) and joined the board, and George J. Pastrana was named President, Dogfish Head, both reporting to CEO Dave Burwick.
We believe we are creating the most dynamic and diverse American-owned platform for craft beer and beyond.Jim Koch, Founder and Chairman, The Boston Beer Company
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.Sam Calagione, Founder and Brewer, Dogfish Head
Advisory firms were not disclosed for this transaction.