Cheers to that.
Boston Beer (SAM) , the maker of Sam Adams beer, Twisted Tea and Angry Orchard cider, has struck a deal to buy Dogfish Head Brewery in a merger valued at roughly $300 million.
The deal, which is subject to customary closing requirements and approvals, is expected to be finalized by the end of the second quarter, the companies said in a joint statement. The combined entity will be led by current Boston Beer CEO Dave Burwick.Dogfish Head CEO Sam Calagione will join Boston Beer's board.
The combined company will maintain its status as an independent craft brewery, as defined by the Brewers Association, and 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 U.S., the companies said.
Once finalized, Boston Beer will consolidate Dogfish Head's financial results into its own numbers as of the end of the second quarter.
Boston Beer on April 29 reported first-quarter net income of $23.7 million, or $2.02 a share on revenue of $251.7 million. The results matched analysts' expectations.
Shares of Boston Beer gained 1.38% to $337.52 at the open of trading on Friday.