The hip craft beer company Dogfish Head is being acquired by the Boston-based brewer of Sam Adams beer in a $300m cash and stock deal.
The Boston Beer Company announced on Thursday that it had entered into definitive agreements to acquire all of the equity interests in Dogfish Head Holding Co.
Dogfish Head founder Sam Calagione and his family will receive about 406,000 shares of Boston Beer stock valued at about $128m, based on a share price of $314.60. Shareholders in Dogfish Head Brewery, based in Delaware, also will receive $173m in cash, and Calagione will join the board of Boston Beer.
Officials say the combined company will be led by the Boston Beer chief executive, Dave Burwick, and maintain a significant presence in Delaware.
Calagione and the Boston Beer chairman, Jim Koch, are former business rivals and will now be merger partners, the Boston Globe reported.
Dogfish Head, founded in 1995, rapidly became well-known for unusual ingredients in its specialty India pale ales and stouts, and even a world-beating strength beer that reached the level of spirits for alcoholic potency.
Unusual brews with unique ingredients and eye-catching names such as Midas Touch, Noble Rot and Verdi Verdi Good helped put the Delaware brewery on the map.
It has expanded fast but maintained small-batch appeal and profitability.
Dogfish Head expects to sell around 300,000 barrels this year, which should generate net sales of at least $110m for the year. Boston Beer recently reported sales of 4.3m barrels last year, generating more than $1bn in revenue.
