Delaware-based craft beer company Dogfish Head Brewery is being acquired by the Boston-based brewer of Sam Adams beer in a $300 million cash and stock deal. The Boston Beer Company announced Thursday that it had entered into definitive agreements to acquire all of the equity interests in Dogfish Head Holding Co. Dogfish Head founder Sam Calagione and his family will receive about 406,000 shares of Boston Beer stock valued at about $128 million, based on a share price of $314.60. Dogfish Head shareholders also will receive $173 million in cash. Calagione also will join the board of Boston Beer. Officials say the combined company will be led by Boston Beer CEO Dave Burwick and will maintain a significant presence in Delaware.<doc-sep>Two big beer players merge in $300 million deal If craft beer wasn’t already over, this latest news might be the nail in the coffin: the Boston Beer Company — the producers of Samuel Adams beer and the second largest craft brewer in the U.S. — is merging with Dogfish Head Craft Brewery, the 13th largest independent brewery as ranked by the Brewers Association. The deal, valued at $300 million, follows other major consolidations in the beer industry, such as Constellation Brands’ $1 billion acquisition of a San Diego’s Ballast Point in 2015. Boston Beer CEO Dan Burwick (who is NOT the guy in all the Sam Adams commercials) will lead the merged company. “We expect that we’ll see more consolidation in the craft industry over time, and we’ll be in the best position to take advantage of those changes,” he said in a press release. And in other news…<doc-sep>Boston Beer Company, the business that makes Sam Adams beer, is acquiring Dogfish Head Brewery. The deal is valued at about $300 million. "This merger better positions Dogfish Head and our coworkers to continue growing within this definition for many years to come," Sam Calagione, the founder of Dogfish Head, said in a statement. Visit Business Insider's homepage for more stories. Boston Beer Company, which makes Sam Adams beer, is acquiring Dogfish Head, a Delaware craft brewery. "Not only are Dogfish Head and Boston Beer two original American breweries, but Jim Koch and I worked hard with other leading craft brewery founders and the Brewers Association to develop and champion what defines independent American brewers," the Dogfish Head founder Sam Calagione said in a statement on Thursday, referring to the Boston Beer founder and chairman. "This merger better positions Dogfish Head and our coworkers to continue growing within this definition for many years to come." Calagione added that he and his wife, Mariah, would be "reinvesting nearly all of the proceeds back into the combined entity," as well as establishing a philanthropic foundation with a portion of their newly acquired Boston Beer stock. The merger of the publicly traded Boston Beer Company, which also produces Angry Orchard cider, with Dogfish Head, the well-known craft brewery prominently featured in the 2009 documentary "Beer Wars," is sure to shake up the brewing industry. Read more: INSIDE SAM ADAMS — we got a tour from the founder and self-proclaimed 'Willy Wonka of beer' The press release said that the transaction was valued at about $300 million and that Boston Beer CEO Dave Burwick would helm the company. Dogfish Head posted a photo on Facebook and Twitter of Calagione sharing a drink with Koch. —Dogfish Head Brewery (@dogfishbeer) May 9, 2019 Though one Facebook user tagged the pair as "shill" and "sellout," not everyone who commented on the post had such a negative reaction. "To the haters: Samuel Adams / Boston Beer may not be perfect, but few people have been as vocal a proponent of craft beer for as long as Jim Koch," one Facebook user said. "I'd much rather DFH merge with them than get bought by Constellation or (gasp!) ABInbev-SabMillerCoors. We know that BBC won't force through drastic changes and expansion into other markets that the brand can't or won't handle." "A lot of you bozos don't understand what selling out is," another person wrote. "Two independent companies merging is WAYYYY different than if DFH went with InBev or another corporation. Relax, it's going to be OK and possibly create a bigger shipping market and MORE BEER." Not everyone was convinced, however. "Sam Adams has been completely out of touch with actual craft beer for a decade at least," one person wrote. "I don't see how this is good." Another added that Dogfish Head was the "last brewery on earth that I thought would sell out." "Not a fan," another Facebook poster wrote. "Dogfish Head has always been fiercely independent with a focus on unique and sometimes challenging beers. I've been to the brewery 6 times, to the brewpub many times. I spent my 31st birthday there and made some incredible memories. This is the last thing that I expected from DFH. What a shame." Yet another poster had a nuanced view, writing that the merger was a "good idea on paper." "Two crafters who are totally not in a competitive market with each other and could definitely compliment the other by being under one umbrella," the poster wrote. "BUT I feel we, as the consumer, are going to lose the unique and off the wall beers Sam and Dogfish Head brought us." More beer lovers posted their thoughts on Twitter: —please kill Bran (@justinsloe) May 9, 2019<doc-sep>On Thursday, Boston Beer, makers of Sam Adams, and Dogfish Head Craft Brewery shocked the beer world by announcing that the two independent breweries would merge. More specifically, Boston Beer acquired a controlling stake in Dogfish, bought with Boston Beer stock. Founder and longtime craft beer cheerleader Jim Koch, majority owner of Boston Beer became the majority owner of Dogfish. While the Dogfish owners—and craft cheerleaders—Sam and Mariah Calagione, became the second largest owners in both operations. In an age of beer when the biggest craft brewers are getting acquired by huge beverage companies, like Ballast Point selling for a $1 billion to a wine and liquor conglomerate, and Lagunitas went for an undisclosed but likely similar amount to Heineken, how does the second largest craft operation buying the 13th largest compare? Or more most importantly, what the hell does it mean for the beer? "The shortest answer is nothing," says Sam Calagione (pictured left). "But our beers will be easier to find, so drink the shit out of Slightly Mighty IPA even if we're at 88-percent capacity on our canning line." Sam, always a straight shooter, is likely right nothing will change for the consumer. And that's largely because of the merger. That canning line capacity problem he mentions is very real. Earlier this spring, Dogfish launched a 95-calorie IPA named Slightly Mighty ( we're fans ). Their initial plan was to brew 5,000 barrels (10,000 kegs or 69,000 cases), but a flood of orders now puts their projections for the beer closer to 40,000 barrels. Continued growth, says Sam, would force the brewery to install additional canning lines at a cost of at least $20 million. Now with access to brewing capacity at Boston Beer's facilities, our stream of low-cal IPA (as well as cans of 90 Minute IPA, also growing) will remain uninterrupted. But there are better reasons to merge than avoiding a new canning line. Both companies may seem strong, they're everywhere after all. But Boston Beer and Dogfish are getting pinched in the middle of the beer market. Below are thousands of smaller taproom-based brewers (rightfully) gobbling up local dollars with their fresh-as-fresh-can-be beers. And above are the international giants of Anheuser-Busch InBev, MillerCoors, and Heineken that have the market share and money to sway the market regardless of taste. Combined, Boston and Dogfish will still comprise less than 2 percent of the U.S. beer market. Even if Boston is holding steady and Dogfish continues to grow, Koch and Calagione know the beer market is as competitive as it's ever been. And the longtime allies saw an opportunity to strengthen both brands with complementary strengths. In short, Dogfish is a leader in being a loud and proud brand capable of creating the most dedicated followers. And Boston Beer offers the marketing, business, and operational acumen to run a true coast-to-coast brand (Dogfish is currently in 44 states). Both have expanded beyond just beer to what they describe as, other beverages for beer drinkers. Boston Beer has Truly hard seltzer and Angry Orchard hard cider, and Dogfish has it spirits distillery. Calagione also points out, half joking, that he could help the Sam Adams team make a continuously-hopped (like their 60 Minute IPA) lager, should they feel the need. Yes, the announcement was a surprise for the beer drinkers, the important news is that Dogfish Head's growth can continue uninterrupted as we hit summer beer-drinking season. 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Sam Adams brewer Boston Beer Company has signed on to buy Dogfish Head Brewery in a merger agreement valued at approximately $300 million, the companies announced Thursday. The deal would put Sam Adams beer and Dogfish Head's 60-, 90- and 120-Minute IPAs and sour beers all under the same company and combine two high-end craft breweries. The transaction is expected to close towards the end of the second quarter of 2019. Boston Beer will be consolidating Dogfish Head's financial results into its quarterly report at the end of the second quarter of 2019. 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. The new company will also maintain a significant presence in Delaware, home of Dogfish Head. Sam and Mariah Calagione, founders of Dogfish Head, will take nearly all of their merger consideration in the form of Boston Beer stock, becoming the largest shareholders in the company after Jim Koch. They will receive approximately 406,000 shares of Boston Beer stock, based on an agreed upon share price of $314.60. Sam Calagione is set join Boston Beer's board of directors beginning in 2020. Dogfish head shareholders will also receive $173 million in cash. "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," Sam Calagione announced in the press release. Dogfish Head is on pace to sell almost 300 thousand barrels in 2019. The company's net sales for the year are expected to be between $110 million and $120 million. Boston Beer reported a little over $1 billion in revenue for fiscal year 2018.