Farmer Brothers To Acquire China Mist Brands For $10.8 Million

Posted On: 9/15/2016

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TAGS: Farmer Brothers, China Mist Brands, office coffee service, OCS, foodservice, RealCup, single-cup pods, single-cup tea, Keurig, iced tea

FORT WORTH, TX -- Farmer Bros. Co., a national coffee roaster, said it has entered into an agreement to acquire China Mist Brands Inc., a maker of iced teas sold in the office coffee (OCS) and food services channels.

The deal includes $10.8 million, plus a performance-based payment of $0.5 million if certain sales levels are achieved in 2017 and 2018.

Farmer Bros. plans to operate China Mist as an independent subsidiary from its existing Scottsdale, AZ, offices with its current management team and employees remaining.

China Mist's teas are sold in the OCS channel in single-cup pods, RealCup capsules compatible with Keurig brewers and tea bags. The teas also come ready-to-drink in 1.5-, 3- and 5-gallon foodservice containers. The transaction is expected to close in the second quarter of fiscal 2017.

China Mist was founded in 1982 and has national distribution in more than 20,000 foodservice locations.

Founded in 1912 and headquartered in Ft. Worth, TX, Farmer Bros. brands include its namesake Farmer Brothers, along with Metropolitan, Superior, Cain's and McGarvey. The company generated net sales of more than $500 million in fiscal 2015.