Coffee supplier and distributor Farmer Brothers is to acquire all assets of Boyd Coffee Company, a provider of coffee, tea and other beverages, accord to a report in Food Business
The purchase consists of up to $42 million in cash and 21,000 shares of a new series of preferred stock, making an estimated total price of $58.6 million. The acquisition is expected to be completed in 12 to 18 months.
Founded in Portland, OR in 1900, Boyd Coffee Company sells coffee, tea and other drinksto restaurants, hotels and convenience stores. Boyd’s generated around $95 million in revenue during the previous 12-month period, with coffee representing 65% of total sales.
“We expect this acquisition will strengthen our position in the marketplace, expand our distribution footprint, and generate significant synergies”, commented Mike Keown, chief executive officer of Farmer Brothers.
According to sources, the company expects to improve operational efficiency by moving the production to an existing production facility.
Source: Food Business News