A private equity firm has bought a 15 percent stake in Milton-based Dogfish Head Companies.
Sam Calagione, founder of the craft brewer announced the transaction in a letter to employees.
According to the letter, LNK Partners of White Plains, NY will take a minority position in the company in a move endorsed by Calagione, his spouse and corporate officer Mariah, and CEO Nick Benz.
Calagione described LNK as “an incredibly smart and experienced group of people who have worked with companies of all sizes and styles like Levi’s, Performance Bicycles, Gatorade and Calvin Klein to help those guys achieve their goals.
Calagione wrote that the transaction is an exciting development for the company and does not mean the brewer will move toward a public offering of stock or move away from family ownership or controlled growth.
Calagione confirmed that the company has met with other investors, but came away from a meeting with a positive feeling.
“Not only did LNK get on board with our priorities, but they respected them; they were energized around them.”
He added that “in the end Mariah and I agreed that allowing LNK to take a modest 15 percent ownership position would provide the skin in the game that would align us to winning.
The ownership stake comes at a turbulent time for craft and mainstream brewers, with Budweiser owner InBev seeking to merge with the multinational company that owns Miller.
At the same time, big brewers have snapped up smaller craft brewers in an effort to tap into sales gains that have eluded them in recent years as their smaller competitors often rack up double-digit gains.
Dogfish is also seeing craft brewers from California, Colorado and other areas expand to the East Coast with Asheville in the mountains of North Carolina becoming a prime destination.
Calagione has also warned about a shakeout in the craft beer industry.
While the company’s brewery in Milton has been expanded, Dogfish Head has limited its sales territory. Its brands are available in most heavily populated states in the nation.
