Boston Beer (Sam Adams) To Aquire Dogfish Head (Delaware) For $300 Million

May 10, 2019, 08:44 AM

I think you will see this happening more and more as the craft beer industry is absolutely saturated right now and starting to stall out:

A large regional craft brewer near me by the name of Weyerbacher was recently sold as well.

quote:

Boston Beer to acquire Dogfish Head Brewery in a $300 million deal

**The deal would put Sam Adams beer and Dogfish Head's 60-, 90- and 120-Minute IPAs and sour beers all under the same company.

**The transaction is expected to close towards the end of the second quarter of 2019 and Boston Beer will be consolidating Dogfish Head's results into its financial results at the end of the second-quarter of 2019.

**The combined company will be led by Boston Beer CEO Dave Burwick.

Sam Adam's brewer Boston Beer Company has signed on to buy Dogfish Head Brewery in a merger agreement valued at approximately $300 million, the companies announced Thursday.

The deal would put Sam Adams beer and Dogfish Head's 60-, 90- and 120-Minute IPAs and sour beers all under the same company and combine two high-end craft breweries.

The transaction is expected to close towards the end of the second quarter of 2019. Boston Beer will be consolidating Dogfish Head's financial results into its quarterly report at the end of the second quarter of 2019.

The combined company will be led by Boston Beer CEO Dave Burwick. Both founders, Jim Koch of Boston Beer, and Sam Calagione of Dogfish Head, will be involved in the newly-combined company. The new company will also maintain a significant presence in Delaware, home of Dogfish Head.

Sam and Mariah Calagione, founders of Dogfish Head, will take nearly all of their merger consideration in the form of Boston Beer stock, becoming the largest shareholders in the company after Jim Koch. They will receive approximately 406,000 shares of Boston Beer stock, based on an agreed upon share price of $314.60.

Sam Calagione is set join Boston Beer's board of directors beginning in 2020.

Dogfish head shareholders will also receive $173 million in cash.

"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," Sam Calagione announced in the press release.

Dogfish Head is on pace to sell almost 300 thousand barrels in 2019. The company's net sales for the year are expected to be between $110 million and $120 million.

Boston Beer reported a little over $1 billion in revenue for fiscal year 2018.

Link

May 10, 2019, 09:11 AM

HighZonie

I am sure the takeover negotiations will get real..... (wait for it)........

.... Frothy

May 10, 2019, 09:16 AM

kx90

At least it's Sam Adams buying them and not Buttwiper.

I like Dogfish. We were at the brewery last summer but didn't do the tour, we're going to try and go down again this summer for the tour.

Lots of small craft breweries around here in SE PA.

May 10, 2019, 09:27 AM

PASig

quote:
Originally posted by kx90:

Lots of small craft breweries around here in SE PA.

Pennsylvania has more small craft brewers than any other state.

For the third consecutive year, Pennsylvania produced more craft beer than any other state in the nation, Brewers Association chief economist Bart Watson shared during the Brewers of Pennsylvania’s annual Meeting of the Malts gathering in Hershey, Pennsylvania. In 2018, Pennsylvania’s 354 craft breweries combined to produce more than 3.7 million barrels of beer. And, according to Watson, the state ranked second in the number of brewery openings, trailing just California. Most of that growth, Watson said, is coming from the small breweries that sell directly to consumers.

May 10, 2019, 09:30 AM

jhe888

Boston Beer is getting very big, but they still make good brews.

May 10, 2019, 09:38 AM

zipriderson

Dogfish Head is a quality craft operation. Sam Adams is a not. I hope they don't take the 'craft' out of craft beer.

May 10, 2019, 09:41 AM

HKg3

I have spoken with Sammy from Dogfish Head at many beer events. He is a really nice guy, who truly loves good beer. I am happy to hear this working well for him and his family.

I hope they continue to make some of their more unusual brews after the merger.

Some of my Dogfish Head favorites are Midas Touch, Rasion D'Etre, Rasion Extra, and Chateau Jaihu.

May 10, 2019, 09:48 AM

kx90

quote:
Originally posted by PASig:
quote:
Originally posted by kx90:

Lots of small craft breweries around here in SE PA.

Pennsylvania has more small craft brewers than any other state.

For the third consecutive year, Pennsylvania produced more craft beer than any other state in the nation, Brewers Association chief economist Bart Watson shared during the Brewers of Pennsylvania’s annual Meeting of the Malts gathering in Hershey, Pennsylvania. In 2018, Pennsylvania’s 354 craft breweries combined to produce more than 3.7 million barrels of beer. And, according to Watson, the state ranked second in the number of brewery openings, trailing just California. Most of that growth, Watson said, is coming from the small breweries that sell directly to consumers.

I believe it. We're surrounded by them

I'm within spitting distance of NCBC which is growing. Another local brewery that I've been a member at for the past few years since they opened has a couple small brew fests each year it's good time to sample other local breweries. Good time to be a beer enthusiast

May 10, 2019, 09:53 AM

PASig

quote:
Originally posted by kx90:

I believe it. We're surrounded by them

I'm within spitting distance of NCBC which is growing. Another local brewery that I've been a member at for the past few years since they opened has a couple small brew fests each year it's good time to sample other local breweries. Good time to be a beer enthusiast

Not familiar with them, where are they?

I used to live within walking (staggering?

) distance of Sly Fox's main brewery and tasting room in Pottstown. Now live in a town with a craft CIDER maker who makes like 6 different types of hard cider from their own orchard (Frecon Farm) and features them in their own little pub in town.

As far as those poo-pooing Sam Adams, they still make a really good Lager that is quite good for its class if you ask me. I'd take a Boston Lager over some fancy-schmancy 19-hop-variety-wild-yeast-extracted-from-the-bearded-Hipster-douche-brewer's-beard-IPA any day!

May 10, 2019, 10:23 AM

kx90

quote:
Originally posted by PASig:
quote:
Originally posted by kx90:

I believe it. We're surrounded by them

I'm within spitting distance of NCBC which is growing. Another local brewery that I've been a member at for the past few years since they opened has a couple small brew fests each year it's good time to sample other local breweries. Good time to be a beer enthusiast

Not familiar with them, where are they?

I used to live within walking (staggering? ) distance of Sly Fox's main brewery and tasting room in Pottstown. Now live in a town with a craft CIDER maker who makes like 6 different types of hard cider from their own orchard (Frecon Farm) and features them in their own little pub in town.

As far as those poo-pooing Sam Adams, they still make a really good Lager that is quite good for its class if you ask me. I'd take a Boston Lager over some fancy-schmancy 19-hop-variety-wild-yeast-extracted-from-the-bearded-Hipster-douche-brewer's-beard-IPA any day!

They're based in Croydon, but they also have a brewhouse in Jenkintown now.
http://neshaminycreekbrewing.com/
http://www.boroughbrewhouse.com/wpdir/

Friend of mine (GF's brother) lives within walking distance to Sly Fox. We went to the Manatawny Still Works last year for a "tour" and then went to Sly Fox across the street to eat.