LITTLE ROCK, Ark. — Sustainable-coffee manufacturer Westrock Coffee Co. has agreed to acquire S&D Coffee & Tea, a leading coffee and tea distributor for U.S. convenience stores, from Toronto-based beverage company Cott Corp. for an undisclosed amount.
The acquisition aims to create a leading integrated coffee company for the retail, convenience, restaurant and hospitality industries, the companies said. Westrock and S&D will keep their brand names and continue operating from their headquarters in Little Rock, Ark., and Concord, N.C., respectively. Both companies will also expand their packaging facilities.
BBH Capital Partners, a private equity firm, will provide acquisition capital alongside Westrock’s existing investors to assist with the deal. The acquisition is expected to close within the next several weeks, subject to customary closing conditions.
“This strategic combination will create the nation’s premier coffee, tea and extract supplier that is capable of serving the most complex and demanding customers across the country and around the world,” said Scott Ford, co-founder and CEO of Westrock Coffee Co. “We intend to use the scale of the new company to offer the most innovative beverage solutions with competitive pricing to our global clients while simultaneously providing a premium price to our farmer partners at origin. Our unmatched commitment to customer service, product quality and our industry-leading sustainability and transparent sourcing practices will remain a cornerstone of our business. Our combined organization will seek to lead the industry with our sustainability program and to accelerate the development of a broadening array of innovative products.”
The combined company will employ about 1,700 people globally to roast, grind and package more than 220 million pounds of coffee per year. It will continue producing tea products and premium extracts. Ron Hinson, who has been president and CEO of S&D for 41 years, will become chairman emeritus once the acquisition closes.
“Participating in S&D’s growth and success during the past four decades has been incredible,” Hinson said. “We achieved industry leadership by innovating to serve our customers. We invested in job and career growth for employees and our community, and I look forward to working with Scott and the newly combined leadership team to see these achievements go even further. The highly complementary product and customer focus S&D brings to Westrock Coffee makes this a terrific event for our business, our employees and especially our customers.”
This is the second time in four years that S&D has been acquired. In August 2016, Cott Corp. acquired S&D for approximately $355 million. The deal intended to improve Cott's channel mix outside of large-format retail and supermarkets.
Founded in 1927, S&D Coffee & Tea has more than 110,000 customers through national distribution and direct-store delivery.
Cott Corp. is a water and filtration service company offering services to more than 2.5 million customers in North America and Europe. The company is supported by sales and distribution facilities and fleets, as well as wholesalers and distributors.
Westrock Coffee is a farmer-focused company that provides coffee sourcing and financing, supply-chain management, roasting, packaging and distribution services. The company markets coffee from more than 20 countries and has seven offices globally. In the United States, Westrock roasts, grinds, packages and delivers branded and private-label coffee in bags, fractional packs and single-serve cups.
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