Dogfish Head Brewery announced Thursday that it has reached a merger agreement valued at $300 million with Boston Beer Co., brewer of Sam Adams beer, Twisted Tea, Angry Orchard ciders and Truly Spiked & Sparkling.
Boston Beer Company wrote in a news release that it has signed a definitive merger agreement with the Milton, Del.-based Dogfish Head, marking a significant market shift in the craft brewing industry.
“The combined company will maintain its status as an independent Craft brewery, as defined by the Brewers Association,” the company wrote.
“It will be better positioned to compete against the global beer conglomerates within the craft beer category that are 50- and 100-times its size, while still representing less than 2% of beer sold in the United States.”
Boston Beer is the nation’s second-largest craft brewer, according to craftbeer.com’s 2018 rankings. Dogfish is 13th.
The deal is expected to close late in the second quarter of 2019, the company wrote.
Dogfish Head is one of the most popular craft brewing companies, with a heavy presence on the East Coast with its line of 60-, 90- and 120-minute IPAs along with its specialty beers.
Dogfish Head shareholders will receive $173 million in cash as part of the deal, with founder Sam Calagione to join Boston Beer’s board of directors in 2020.
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Dogfish Head — which the company said is on pace to sell nearly 300,000 barrels in 2019 — will continue to maintain a heavy presence in Delaware, where the company was founded.