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Farmer Bros Acquires Boyd Coffee For 586 Million

NORTHLAKE, TX -- Farmer Bros. Co. a national coffee roaster based here, said it will acquire Boyd Coffee Co. with a combination of cash and stock valued at $58.6 million. Boyd's Coffee, founded in 1900 in Portland, OR, is one of the oldest family-owned coffee companies in the world. The transaction is expected to close in the fourth quarter of 2017. Farmer Bros. said it expects the transition and integration of the Boyd's business to take place over the next 12 to 18 months. "We believe the Boyd's busine...

August 21, 2017

NORTHLAKE, TX -- Farmer Bros. Co. a national coffee roaster based here, said it will acquire Boyd Coffee Co. with a combination of cash and stock valued at $58.6 million.

Boyd's Coffee, founded in 1900 in Portland, OR, is one of the oldest family-owned coffee companies in the world. The transaction is expected to close in the fourth quarter of 2017. Farmer Bros. said it expects the transition and integration of the Boyd's business to take place over the next 12 to 18 months.

"We believe the Boyd's business will be an excellent strategic fit for Farmer Brothers," said Farmer Brothers chief executive Mike Keown. "We expect this acquisition will strengthen our position in the marketplace, expand our distribution footprint, and generate significant synergies."

The purchase price consists of up to $42 million in cash and 21,000 shares of a new series of preferred stock. The preliminary estimated value of the preferred stock is $16.6 million or $789 per share, leading to an estimated value of the aggregate purchase price of $58.6 million.

Boyd's generated revenue of approximately $95 million and processed and sold about 16 million lbs. of green coffee during the previous 12-month period. 

Founded in 1912 and headquartered in Northlake, TX, Farmer Bros. had net sales of over $500 million in fiscal 2016. It has about 1,600 employees nationwide. Its brands include Farmer Brothers, Superior, Metropolitan, Cain's and China Mist.