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Sam Adams and Dogfish Head brewers set to merge

Craft-brewed beers have become extremely popular in California and around the country in the last two decades, and independent breweries that were once struggling are now extremely successful. The Boston Beer Company, which is best known for its Samuel Adams line of beers, has long been one of the leaders in the craft-brewed sector, but smaller local companies like the Dogfish Head Craft Brewery have been taking a larger share of the market in recent years.

On May 9, The Boston Beer Company announced that it had signed a definitive merger agreement with the Dogfish Head Craft Brewery. In a press release, the company said that the merger would create a brewer with the resources and experience needed to do battle with multinational beer conglomerates. According to industry sources, the founder of the Dogfish Head Craft Brewery will receive more than 400,000 BBC shares under the terms of the deal. The shares have been trading for more than $300 each in recent weeks. The Delaware-based craft brewer's shareholders will be paid $173 million in cash.

The Boston Beer Company was able to make the move because the craft-brewed beer sector is growing rapidly and its profits are soaring as a result. The company recently announced that its year-over-year first quarter revenues were up by almost a third to $251.7 million. The deal is reported to be worth in excess of $300 million.

Closing mergers like this one can be a long and frustrating process even when all of the parties involved are behind the deal. Attorneys with experience in mergers and acquisitions could help companies to avoid costly delays by scrutinizing corporate documents and state and federal regulations to identify possible stumbling blocks. Attorneys could then suggest strategies to deal with potentially thorny problems while keeping the deal on track.

Source: CNN, "The brewers of Sam Adams and Dogfish Head merge in $300 million deal", Rob McLean, May 9, 2019

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