Boston Beer buys Pennsylvania Diageo brewery for $55 million
Boston Beer Co., which brews Samuel Adams beer, has signed a purchase and sales agreement with Diageo PLC''s U.S. division to buy the distiller''s Pennsylvania brewery for $55 million, the Associated Press reports. The brewer said if the deal goes through, it will not build a new brewery in Freetown, Mass. Boston Beer said the Diageo brewery, located 60 miles outside of Philadelphia, will raise its brewing capacity by about 1.6 million barrels of beer annually with the potential for more than 2 million barrels. Boston Beer said it brewed some of its beers at the factory between 1994 and 2001. The company expects it will need to make some investments and renovations to brew its beers there again. The company said it will begin brewing at the location in the third or fourth quarter of 2008. The brewery will remain in operation during the transition time and will continue producing Diageo products if requested after the sale is final. The brewer added that it will keep about 194 jobs at the factory.