"This is a transformational and strategic step, which we believe materially strengthens our competitive position and advances our long-term growth strategy. The agreement comes three months after Royal Cup announced an undisclosed investment from the Dallas-based firm Braemont Capital to support nationwide growth and expand production capacity."
"The deal would combine two longtime B2B competitors and legacy U.S. coffee suppliers with activities in foodservice, hospitality, office coffee, convenience and private-label channels. Announcements from the companies dated March 4 framed the merger as a joining of forces in roasting, national distribution, and beverage equipment and service."
"Founded in 1896, Royal Cup says it offers one of the nation's most extensive food service and office coffee route delivery systems, while also maintaining coffee sourcing, roasting and packing operations. Farmer Brothers, which operated for more than a century in California before relocating to the Dallas-Fort Worth Metroplex, has operated as a national roaster, wholesaler, equipment service provider and distributor."
Royal Cup Coffee & Tea plans to acquire publicly traded Farmer Brothers Coffee Co. in an all-cash transaction at $1.29 per share, valuing the deal at roughly $28 million based on outstanding shares as of December 31, 2025. The acquisition is expected to close in the second quarter of 2026, subject to shareholder approval and other conditions. This merger combines two longtime B2B competitors and legacy U.S. coffee suppliers operating across foodservice, hospitality, office coffee, convenience, and private-label channels. Royal Cup, founded in 1896, operates extensive food service and office coffee route delivery systems alongside coffee sourcing, roasting, and packing operations. Farmer Brothers, a century-old company now based in the Dallas-Fort Worth area, functions as a national roaster, wholesaler, equipment service provider, and distributor. The deal follows Royal Cup's recent undisclosed investment from Dallas-based Braemont Capital to support nationwide growth and expand production capacity.
#coffee-industry-acquisition #b2b-consolidation #foodservice-distribution #private-equity-investment
Read at Daily Coffee News by Roast Magazine
Unable to calculate read time
Collection
[
|
...
]