Founder Sam Calagione to join board

Dogfish Head Brewery announced last week that it signed a merger agreement with The Boston Beer Company Inc.

The company will maintain its status as an independent craft brewery, as defined by the Brewers Association. In a press release, Dogfish said the merger will make the company “better positioned to compete against the global beer conglomerates within the craft beer category that are 50- to 100 times its size.”

Sales will be less than 2 percent of the U.S. beer market, the press release noted.

The combined company will be led by Boston Beer CEO Dave Burwick. Jim Koch of Boston Beer and Sam Calagione of Dogfish Head will continue to lead brewing innovation for the company. Calagione will join Boston Beer’s board of directors.

“This merger better positions Dogfish Head and our co-workers to continue growing within this definition for many years to come,” Calagione said. “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. We’re also proud to announce that we intend to devote a percentage of the Boston Beer stock that we receive to establishing a foundation and funding various local charitable programs.”

The transaction is expected to close late in the second quarter of this year. Calagione and his family will receive about 407,000 shares of Boston Beer stock, based on a share price of $314.60. Dogfish Head shareholders will also receive $170 million in cash, most all of which is for Dogfish Head’s financial investors, with the exception of certain transaction-related expenses.