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M&A Report: Tesla, WestJet and the Boston Beer Company In The News

M&A Report: Tesla, WestJet and the Boston Beer Company In The News

In keeping with our mission to provide comprehensive advertising analysis, MediaRadar puts together a report of the most important mergers and acquisitions news each week. Stay in the loop, whether you sell advertising space or focus on business development.

This week: Tesla invests in supercapacitor technology with its acquisition of Maxwell Technologies, Onex Corporation acquires the second largest Canadian airline WestJet, and the owner of Angry Orchard and Samuel Adams acquires Dogfish Head Brewery.

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Tesla Makes Its Fifth Acquisition Since Its Founding

Electric car maker, Tesla, Inc. has completed its previously announced acquisition of battery and supercapacitor manufacturer Maxwell Technologies, Inc.

Tesla made the acquisition via a stock-swap, worth approximately $230 million, for a controlling stake of 79 percent of Maxwell.

Maxwell specializes in supercapacitors, an electricity storage device more efficient than batteries, and dry electrode technology, which helps batteries store more energy. Maxwell’s electrode manufacturing technology purports to lower costs by up to 20 percent — and some experts believe the move is geared mainly toward lowering Tesla’s costs and improving cash flow. “Even if the Maxwell acquisition makes only a marginal improvement to the energy density of Tesla batteries, it still contributes to the bottom line,” writes Akshat Rathi at QZ.

Maxwell is only the fifth acquisition by Tesla since it was founded 16 years ago.

WestJet Airlines Acquired by Private Equity Company

WestJet Airlines Ltd, the second-largest airline in Canada behind Air Canada, is being acquired by Toronto-based private equity company Onex Corporation.

The acquisition will be an all-cash deal valued at $5 billion — a 67 percent premium on WestJet’s pre-announcement market value. “Onex’ aerospace experience, history of positive employee relations and long-term orientation makes it an ideal partner for WestJetters, and I am excited about our future,” said Clive Beddoe, WestJet’s Founder and Chairman.

Upon completion, WestJet will operate as a privately-held company and remain headquartered in Calgary.

The Boston Beer Company Acquires Dogfish Head Brewery

The Boston Beer Company has officially entered into a merger agreement with the Dogfish Head Brewery in a deal worth $300 million.

The merged company will be led by Boston CEO Martin F. Roper, and is expected to build upon Boston’s portfolio in craft beer and Dogfish’ India Pale Ale and session sour brands. The combination means the newly formed company can rely on Boston’s strong sales and Dogfish’ position in the high end craft beer market.

While the deal is still marinating, Dogfish is on track to sell 300,000 barrels in 2019, which represents a large single digit improvement from 2018. The deal is expected to close late in the second quarter of 2019.

In Other News

French tire company Michelin will acquire telematics firm Masternaut to add fleet tracking and optimization to the second largest tire manufacturer’s Services and Solutions business. B&G Foods, Inc. will acquire the Clabber Girl brand from Hulman & Company, which makes baking powder, baking soda and cornstarch. B&G Foods expects the acquisition will generate an additional $70 – $75 million in annual net sales.