Two of the most well known American breweries made a shocking announcement May 9.
Dogfish Head Brewery's founder Sam Calagione and Jim Koch, founder of the Boston Beer Company, which makes Sam Adams beer, took to Twitter to announce the two breweries would be merging together.
The merger, which is valued at $300 million, should be completed by the end of the second quarter of 2019, according to Delaware Online.
Calagione, who is a Massachusetts native, founded the Milton, Delaware-based independent brewery in 1995 with his wife, Mariah, who is a Delaware native.
“This merger better positions Dogfish Head and our co-workers to continue growing within this definition for many years to come,” Calagione said in a statement. "In fact, Mariah and I believe so much in the future of our merged companies that we are all in, and personally we’re reinvesting nearly all of the proceeds back into the combined entity.”
According to a press release, Dogfish Head will continue to operate as a craft brewery and retain its name. Koch and Calagione will work together to as head brewers of the newly formed company.
When the merger is completed, Sam and Mariah Calagione will be the largest non-institutional shareholders of SAM stock, Delaware Online reported. The Calagione family will receive about 407,000 shares of the stock with a share price of $314.60. Calagione will also have a seat on the Boston Beer’s board of directors.
“We believe we are creating the most dynamic and diverse American-owned platform for craft beer and beyond,” said Jim Koch in a prepared statement. “Dogfish Head has a proud history as a craft beer pioneer with a brand that is beloved by American consumers and highly respected by the industry."
Calagione, who won a James Beard Award in 2017 for Outstanding Wine, Spirits, or Beer Professional category, has grown the company from a microbrewery to a well-known beer destination. Along with the brewery and tasting room, The Dogfish Head brand operates two restaurants—Dogfish Head Brewings & Eats and Chesapeake & Maine—in Rehoboth Beach, Delaware and the Dogfish Head Inn in Lewes, Delaware. Details about whether or not the other parts of the business will be included in the merger have not been released.
The brand currently employs around 400 people. Dogfish Head distributes its beer to 40 states.
Along with Sam Adams beer, Boston Beer Co. also makes Truly Hard Seltzer, Twisted Tea and Angry Orchard hard cider.
After the merger, Boston Beer CEO Dave Burwick will run the new company. “This is a formidable combination of brands, incredible brewing talent, and leaders who remain 100 percent focused and committed to the long-term health of our breweries and growing the beer industry," he told Delaware Online.