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Royal Cup Espresso and Tea has accomplished its acquisition of Farmer Brothers Espresso Co., bringing collectively two of the oldest U.S. business espresso firms beneath a single Birmingham, Alabama-based firm.
The deal, first introduced in March, was accredited by Farmer Brothers stockholders at a particular assembly on Could 1. Buying and selling of Farmer Brothers frequent inventory on the Nasdaq International Choose Market was halted earlier than the market opening on Could 5, taking the corporate personal after many years as a publicly traded enterprise.
In line with a Could 5 SEC submitting from Farmer Brothers, Royal Cup paid $1.29 in money per Farmer Brothers share. The overall payout was roughly $28.3 million, together with funds tied to restricted inventory models and different stock-based awards.
The acquisition expands Royal Cup’s nationwide attain throughout foodservice, hospitality, healthcare, comfort and retail channels. Farmer Brothers additionally brings a portfolio of manufacturers together with Boyd’s Espresso, SUM>ONE Espresso Roasters, West Coast Espresso, Cain’s and China Mist.
The transaction was backed by Braemont Capital, the Dallas-based personal fairness agency that beforehand invested in Royal Cup.
“This extremely complementary acquisition accelerates Royal Cup’s technique to construct a scaled, nationwide platform within the espresso trade,” Wali Bacdayan, a companion at Braemont Capital, stated in an announcement of the closing. “Since investing in Royal Cup, now we have supported its execution of a disciplined, sustainable development plan.”
Based in 1896 in Birmingham, Royal Cup has lengthy operated one of many nation’s most intensive foodservice and workplace espresso route supply programs.
Farmer Brothers, based in 1912 in California earlier than relocating to the Dallas-Fort Value space over a century later, had considerably restructured its operations in recent times. The corporate offered its Northlake, Texas manufacturing and distribution facility to TreeHouse Meals for $100 million in 2023 and refocused on its nationwide direct-store-delivery mannequin.
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