TORRANCE, Calif. -- Farmer Bros. Co. has announced a definitive agreement to acquire from Rae' Launo Corp. (RLC) assets relating to RLC's direct-store delivery (DSD) business that primarily serves convenience stores in the Southeast and RLC's in-room distributor channel that primarily serves the hospitality industry.
Through the $1.5-million asset acquisition, Farmer Bros. will acquire additional customers and expand its reach in the southeastern United States. RLC's senior management team has agreed to join Farmer Bros., helping to promote a smooth customer transition. RLC recorded $3.6 million in annual revenue in calendar 2013.
The companies said they expect the closing, which is subject to the satisfaction of certain conditions, to occur by the end of 2014.
"RLC, with its well-earned reputation in the Florida and Southern Georgia region, is a great fit for Farmer Brothers, allowing us to address gaps in our distribution network, broaden our exposure to the hospitality in-room business, and improve customer penetration in the Southeast," said Michael Keown, president and CEO of Farmer Bros. Co.
"Joining Farmer Bros., with its strong DSD network and national market leadership, is a great opportunity for our DSD customers and hospitality distributors. It will provide us an even greater advantage to reach new customers and expand our product offerings to existing customers," said Ben Rayfield, president of RLC.
Founded in 1997 by Ben Rayfield, Rae' Launo is a wholesaler and distributor of coffee, tea and coffee-related products such as coffee filters, sugar and creamers in the southeastern United States. The company is a direct distributor of coffee primarily to convenience stores and gas stations, hotels and other foodservice providers. Rae' Launo is based in Tampa, Fla.
Founded in 1912, Farmer Bros. is a manufacturer, wholesaler and distributor of coffee, tea and culinary products. It is a direct distributor of coffee to restaurants, hotels, casinos, offices, quick-service restaurants (QSRs), convenience stores, healthcare facilities and other foodservice providers, as well as private-brand retailers in the QSR, grocery, drugstore, restaurant, c-store and independent coffee house channels. The company's product line includes roasted coffee, liquid coffee, coffee-related products such as coffee filters, sugar and creamers, assorted iced and hot teas, cappuccino, cocoa, spices, gelatins and puddings, soup bases, dressings, gravy and sauce mixes, pancake and biscuit mixes and jellies and preserves.
Based in Torrance, Calif., Farmer Bros. generated net sales of more than $500 million in fiscal 2014. The company's primary brands include Farmer Brothers, Artisan Collection by Farmer Brothers, Superior, Metropolitan, Cain's and McGarvey.
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