Alabama’s Royal Cup Espresso & Tea plans to accumulate Farmer Brothers Espresso Co. in an all-cash deal that will take the publicly traded Texas-based firm personal.
The businesses mentioned Royal Cup pays $1.29 per share for all excellent Farmer Brothers inventory, with closing anticipated within the second quarter of 2026, pending approval from Farmer Brothers shareholders and different circumstances.
As of Dec. 31, 2025, Farmer Brothers had 21,720,306 shares excellent, which might translate to a price of roughly $28 million at $1.29 per share.
The settlement comes three months after Royal Cup introduced an undisclosed funding from the Dallas-based agency Braemont Capital to help nationwide progress and increase manufacturing capability.
The deal would mix two longtime B2B opponents and legacy U.S. espresso suppliers with actions in foodservice, hospitality, workplace espresso, comfort and private-label channels. Bulletins from the businesses dated March 4 framed the merger as a becoming a member of of forces in roasting, nationwide distribution, and beverage tools and repair.
“It is a transformational and strategic step, which we consider materially strengthens our aggressive place and advances our long-term progress technique,” Royal Cup President and CEO Chip Wann mentioned.
Based in 1896, Royal Cup says it affords “one of many nation’s most in depth meals service and workplace espresso route supply techniques,” whereas additionally sustaining espresso sourcing, roasting and packing operations.
Farmer Brothers, which operated for greater than a century in California earlier than relocating to the Dallas-Fort Value Metroplex, has operated as a nationwide roaster, wholesaler, tools service supplier and distributor for quite a few enterprise segments.
In 2023, the corporate bought its Texas espresso manufacturing and distribution facility to Illinois-based TreeHouse Meals for $100 million.
Farmer Brothers additionally owns different client and B2B espresso manufacturers together with: Boyd’s Espresso, which it acquired in 2017; West Coast Espresso, which it acquired in 2017; and the in-house Sum>One specialty espresso model, launched final 12 months.
Farmer Brothers enters this deal after blended monetary outcomes in recent times. Within the firm’s most up-to-date full fiscal 12 months, ended June 30, 2025, web gross sales have been primarily flat at $342.3 million. Gross margin improved and adjusted EBITDA rose to $14.8 million, though the corporate nonetheless posted a web lack of $14.5 million.
Outcomes weakened within the first half of fiscal 12 months 2026. For the six months ended Dec. 31, 2025, Farmer Brothers reported $170.5 million in web gross sales, down from $175.1 million a 12 months earlier, whereas web loss widened to $8.9 million from $4.8 million.
Feedback? Questions? Information to share? Contact DCN’s editors right here. For all the newest espresso business information, subscribe to the DCN publication.
Nick Brown
Nick Brown is the editor of Each day Espresso Information by Roast Journal.
