Coffee Service

TreeHouse Foods to buy Farmer Brothers’ direct ship business for $100M

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June 8, 2023

TreeHouse Foods Inc., a multinational food processing company specializing in producing private label packaged foods headquartered in Oak Brook, Illinois, has agreed to purchase Farmer Brothers Co.'s, direct ship business, including its Northlake, Texas facility, for approximately $100 million, subject to customary purchase price adjustments, according to a press release.

Farmer Brothers, a roaster, wholesaler, equipment servicer and distributor of coffee, tea and other allied products, expects to use the proceeds from the sale to pay down outstanding debt associated with its asset-based lending and retire its term loan. The sale will increase Farmer Brothers' balance sheet flexibility and allow it to focus on execution, improving margins and driving strategic growth in the direct store delivery and key account sales channels.

The sale include the transition of approximately 180 Farmer Brothers team members to TreeHouse Foods as TreeHouse Foods moves to begin operations at the Northlake, Texas facility.

Farmer Brothers will transition the entirety of its DSD production operations to its Portland, Oregon roasting and production facility and will continue existing relationships with third-party roasters for additional capacity. The company's corporate headquarters will remain in Northlake, Texas.