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Boston Beer Company and Dogfish Head have signed a merger agreement as of Thursday, in a deal valued at $300 million.
Why it matters: This consolidation brings together the Brewers Association’s second-largest craft brewer, Boston Beer, with the 13th-biggest craft brewery. The companies explained that this will position them to "compete against the global beer conglomerates within the craft beer category." Indeed, both companies will maintain their independent craft brewery status.
Details: Delaware-based Dogfish Head co-founders Sam and Mariah Calagione elected to take most of their merger consideration in the form of stocks — 406,000 shares in total — making them the second-largest shareholders behind Boston Beer founder Jim Koch. The merger — expected to close in the second quarter of the year — comes roughly 4 years after Dogfish Head sold a 15% stake to New York-based private equity firm, LNK Partners.