NORTHLAKE, TX (Feb. 8, 2017) — Farmer Bros. Co. (NASDAQ: FARM) (“Farmer Brothers” or the “Company”) a national coffee roaster, wholesaler and distributor of coffee, tea and culinary products announced today that it has acquired West Coast Coffee Company (“West Coast Coffee”) for $13.5 million, plus a performance-based payment of $1.0 million if certain sales levels are achieved in certain subsequent periods.
“We are excited to welcome West Coast Coffee to Farmer Brothers. Their focus on quality products and customer service, combined with their coffee expertise, make the business a great strategic and cultural fit for Farmer Brothers,” commented Mike Keown, CEO of Farmer Brothers. “James Beckman and Robert Vinson should be proud of their work building the West Coast Coffee brands across retail and foodservice channels.”
West Coast Coffee (“WCC”) is a coffee roaster and distributor headquartered in Hillsboro, Oregon with a focus on the convenience store, grocery and foodservice channels. Operating in 4 states, WCC offers product delivery through direct store delivery (DSD) and 3rd party distribution. “West Coast Coffee has built a strong reputation for delivering high-quality coffee with exceptional customer service,” stated Robert Vincent, Director of Operations of WCC. “Farmer Brothers is an ideal partner to take the next step in expanding our brands to more customers in the foodservice category.”
Farmer Brothers plans to operate West Coast Coffee as a business unit within its DSD organization. WCC will maintain its offices and roasting plant in Hillsboro, Oregon. Its management team, including General Manager James Beckman and Director of Operations, Robert Vincent will continue to run day-to-day operations.
About Farmer Bros. Co.
Founded in 1912, Farmer Bros. Co. is a national coffee roaster, wholesaler and distributor of coffee, tea and culinary products. Our product lines include organic, Direct Trade and sustainably-produced coffee. With a robust line of coffee, hot and iced teas, cappuccino mixes, spices, and baking/biscuit mixes, the Company delivers extensive beverage planning services and culinary products to its U.S. based customers. The Company is a direct distributor of coffee to restaurants, hotels, casinos, offices, quick service restaurants, convenience stores, healthcare facilities and other foodservice providers, as well as private brand retailers. Headquartered in Northlake, Texas, Farmer Bros. Co. generated net sales of over $500 million in fiscal 2016 and has over 1,600 employees nationwide. The Company’s portfolio features a wide range of coffees including Farmer Brothers®, Artisan Collection by Farmer BrothersTM, MetropolitanTM, Superior®, Cain’sTM and McGarvey®.
Certain statements in this press release constitute “forward-looking statements.” When used in this press release, the words “will,” “expects,” “anticipates,” “estimates” and “believes,” and similar expressions and statements that are made in the future tense or refer to future events or developments, are intended to identify such forward-looking statements. Such forward-looking statements are subject to risks, uncertainties and other factors that could cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements include, but are not limited to, statements regarding the achievement of the anticipated benefits of the acquisition, the ability of the Company to integrate the acquisition, the risk that any announcements relating to the acquisition could impact the market price of the Company’s common stock, and the risk that the transaction and its announcement could have an adverse effect on the ability of the parties to retain customers and retain and hire key personnel and maintain relationships with their suppliers, distributors and customers.