NORTHLAKE, Texas -- Farmer Brothers Co., a national coffee roaster, wholesaler and distributor of coffee, tea and culinary products, has announced plans to purchase convenience-store supplier Boyd Coffee Co. According to a company statement, the purchase price totals up to $42 million in cash and 21,000 shares of new preferred stock.
Farmer Brothers plans to move Boyd’s production volume into its existing facilities; the full transition and integration process is expected to be completed in the next 12 to 18 months.
“We believe the Boyd’s business will be an excellent strategic fit for Farmer Brothers,” said Mike Keown, chief executive officer of Farmer Brothers. “We expect this acquisition will strengthen our position in the marketplace, expand our distribution footprint and generate significant synergies.”
“We are confident Farmer Brothers is the right company to take the Boyd’s brand to the next level,” said Jeffrey Newman, chief executive officer of Boyd. “We look forward to a smooth transition and providing the same high-quality customer service that has been a hallmark of the Boyd Coffee Co. for over 100 years.”
Randy Clark, chairman of the board for Farmer Brothers, said, “We believe Farmer Brothers is in a strong position to benefit from ongoing coffee industry consolidation by executing accretive acquisitions. Coming off the successful acquisitions of China Mist and West Coast Coffee, the Boyd transaction is another opportunity to advance Farmer Brothers’ long-term growth plans.”
Based in Northlake, Texas, Farmer Brothers Co. generated net sales of more than $500 million in fiscal 2016 and has about 1,600 employees nationwide. The company's primary brands include Farmer Brothers, Artisan Collection by Farmer Brothers, Superior, Metropolitan, Cain's, McGarvey and China Mist.
Founded in 1900 in Portland, Ore., Boyd’s supplies restaurants, hotels and convenience stores with coffee, tea and other beverages. Boyd’s business model is expected to be complementary to Farmer Brothers across customer channels, product portfolios and distribution networks, including a high-touch service model of direct-store-delivery.