Boston Beer Company, Dogfish Head Brewery To Merge

(RTTNews) - Boston Beer Company has agreed to buy Dogfish Head Brewery in a transaction valued at about $300 million.

The transaction is expected to close late in the second quarter, subject to customary closing conditions. Sam Calagione and his family will receive about 406,000 shares of Boston Beer stock based on a share price of $314.60. Dogfish Head shareholders will also receive $173 million in cash, most all of which is for the benefit of Dogfish Head's financial investors.

Boston Beer expects that its current cash on hand and available line of credit will be more than sufficient to fund the cash component of the transaction.

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. It is expected that Sam Calagione will join Boston Beer's Board of Directors beginning in 2020.