Industry News

Farmer Brothers Completes Acquisition of West Coast Coffee Company

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®.

Forward-looking Statements
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.

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