We just received not one but two tips from readers saying that Dogfish Head has signed an agreement to sell a minority stake to LNK Private Equity Partners. One insider is citing 15% and another is citing 10% with EATALY involved so stay tuned. This is REALLY preliminary news but I knew you’d want it. We’ll update with more info as soon as I can confirm details/sources. There appears to be a buy-back clause in the contract as well.
This update sent out to employees from Sam Calagione: 
"Today, I am excited to announce that Mariah and I added a new asset as external support to Dogfish Head - LNK Partners. You are likely thinking, who or what is that? Well, they are an incredibly smart and experienced group of people who have worked with companies of all sizes and styles like Levi's, Performance Bicycle, Gatorade & Calvin Klein to help those guys achieve their goals in their respective industries. LNK is making an investment to own 15% percent of our company."
"But while these conversations happened, our talks have always been prefaced by our steadfast desire to remain a family-controlled and family-led company. We remained firm in that position no matter who was sitting at the other side of the table pitching us their deal and we still do today. We went into our introductory meeting with LNK as if it would be our only, but rather found that the result was a robust and thoughtful dialogue about Dogfish's solid and unique position in the craft beer industry. We walked out of the meeting thinking perhaps we should rethink those original assumptions.”
"During the process of getting to know each other, the value in partnering with LNK became clearer, for while we have been approaching our world through the lens of craft, they could bring different exposures and experiences to help adjust that focus, In so doing they could provide the food for thought we had yet to sample. As the possibility of a partnership continued to crystallize for us, all that remained was their agreement around our 3 deal-breakers. 1.) acceptance that this would not be a path toward IPO, majority ownership or any other position that would be counter to our commitment to remain a family-controlled & family-led company, 2.) alignment in holding holy to our off-centered culture as an ideal to be treasured, & 3.) acceptance that we will always choose smart growth over fast growth. End of story. Not only did LNK get on board with our priorities, but they respected them; they were energized around them."
”At the "Dogfish Board of Directors level there will be one representative joining who will bring some diversity of thought and experience to that group. Additionally, they will be acting as thought partners for Mariah, Nick and I to challenge us, provide sounding board and offer other best practice advice. We contemplated whether filling our voids could be just as easily achieved through the work of a rock solid consultant but in the end Mariah and I agreed that allowing LNK to take a modest 15% ownership position would provide the skin in the game that would align us to winning."
More comments from Sam here:
Click here
0 comments (click to read or post):
Post a Comment
Please leave a comment...I do moderate each comment so it may not appear immediately...and please be nice! You can also comment using Disqus (below) or even comment directly on Facebook (bottom).