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Coffee

Farmer Brothers Announces Agreement to Acquire Boyd Coffee Company

Farmer Bros. Co.  has entered into an agreement to acquire substantially all the assets of Boyd Coffee Company with a combination of cash and stock.

Overview

Boyd’s is a privately-held company in business for over 100 years with a national reputation in the coffee industry. Boyd’s business model is expected to be complementary to Farmer Brothers across customer channels, product portfolios and distribution networks, including a high-touch service model of direct-store-delivery. Boyd’s generated revenue of approximately $95 million and processed and sold about 16 million pounds of green coffee during the previous 12-month period. Boyd’s coffee sales accounted for approximately 65 percent of revenue with the remainder of revenue primarily coming from other beverages and accessories.

Farmer Bros. expects to improve overall operational efficiency by moving the production volume associated with the acquired Boyd’s business into its existing production facilities. The transition and integration of the Boyd’s business is expected to take place over the next 12-18 months.

“We believe the Boyd’s business will be an excellent strategic fit for Farmer Brothers,” said Mike Keown, Chief Executive Officer of Farmer Brothers. “We expect this acquisition will strengthen our position in the marketplace, expand our distribution footprint, and generate significant synergies.”

“We are confident Farmer Brothers is the right company to take the Boyd’s brand to the next level,” said Jeffrey Newman, Chief Executive Officer at Boyd’s. “We look forward to a smooth transition and providing the same high quality customer service that has been a hallmark of the Boyd Coffee Company for over 100 years.”

Randy Clark, Chairman of the Board at Farmer Brothers, noted, “We believe Farmer Brothers is in a strong position to benefit from ongoing coffee industry consolidation by executing accretive acquisitions. Coming off the successful acquisitions of China Mist and West Coast Coffee, the Boyd transaction is another opportunity to advance Farmer Brothers’ long term growth plans.”

Terms of Transaction

The purchase price consists of up to $42 million in cash and 21,000 shares of a new series of preferred stock, subject to adjustments for working capital and certain hold-backs of cash and stock. As of the signing date, 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 revenues of approximately $95 million during the period from August 1, 2016 through July 31, 2017. Once fully integrated, Farmer Brothers currently expects the transaction to deliver between $13 to $16 million1 in annual incremental adjusted EBITDA. One-time costs associated with the transaction, including professional fees, integration expenses and employee-related fees are expected to be approximately $9 to $11 million, and capital expenditures are expected to be approximately $8 to $11 million through completion of integration, which is expected to be completed in approximately 12 to 18 months.

The transaction is expected to close in the fourth quarter of calendar 2017 (which is the second quarter of fiscal 2018 for Farmer Brothers), subject to certain closing conditions.

#SFFS17 White Coffee’s Gift Packs Perfect the Art of Giving

When the December shopping season has arrived and stressed holiday shoppers are stumped for last minute gift ideas, White Coffee is offering an array of gift packs and canisters that coffee lovers are sure to enjoy.

Visit White Coffee at booth #2136.

Four new gift packs have been created to satisfy holiday shoppers and their loved ones:

Joy – A collection of six 1.5 ounce medium roasted ground coffees including Salted Caramel, Toasted Almond, Vanilla Hazelnut, Coconut Cream, Toffee Nut and Egg Nog in a soft brick format with a silver and gold retro decorated gift box.

Christmas – Six medium roasted ground coffees highlighting flavors of the season including Hazelnut, Vanilla, Peppermint Bark, Ginger Bread, Pumpkin Spice and Chocolate Fudge, also in a 1.5-ounce soft brick format with an old fashioned gold and black presentation.

Jim Beam® – A collection of the latest licensed coffee introduction featuring the taste of the No. 1 selling bourbon with flavors including Original, with its subtle caramel and oaky vanilla flavor, Bourbon Vanilla, Spiced Honey, Signature Dark Roast and Cinnamon Stick in a mild, sweet flavorful coffee.

Spirited Coffee Sampler – A collection of six flavored “spirited” coffees licensed by White Coffee, including two varieties each of Jim Beam, Tortuga® and Kahlua®, in a handy gift pack.

whitecoffee editphoto2Two additional winter gift-giving options include White’s French Roast Coffee in a decorative canister, as well as the Medallion canister – both gourmet coffees and both come in 6-ounce sizes. Other gift options include Everyday, another 6-pack soft brick set of flavored coffees as well as a spring-decorated gift box.

 

Wicked Joe Organic Coffees Celebrates New Look

Wicked Joe Organic Coffees, the family-owned, 100 percent organic certified, Fair Trade™ coffee roastery known for its single origin varietals and blends such as “Wicked French,” has rolled out new packaging after more than 12 years in business.

Wicked Joe coffee imageThe Wicked Joe product line – available at retail stores all over New England and in more than 1,500 grocery retailers nationwide as well as online – previously featured a black bag with a red and green coffee cup logo. Wicked Joe Organic Coffees now sports a cleaner, more modern look, including black and chrome brand elements and an array of accent colors indicating the individual blend, flavor or bean’s origin.

The company has grown and refined its operations significantly over the last decade, including increasing sales by 25 percent and growing capacity by 67 percent in 2016 alone. Owners Bob and Carmen Garver wanted a design that would more accurately reflect the roastery’s progress and focus on quality and professionalism.

“We are very excited about where we are with the business right now, and we think a fresh new look captures that feeling,” said Carmen Garver. “We worked collaboratively with our staff and explored many possibilities, and ultimately we wanted to communicate a vintage feel that could translate in today’s market.”

The colorful, lively nature of the new bags aims to stand out on retail shelves among dozens of competitors. Along with their ever-growing team of coffee experts, the Garvers have spent more than two decades – long before the Maine roastery opened – traveling the world in search of the highest quality coffee bean. From the beginning, the company has had a razor-sharp focus on quality, in addition to a commitment to community, farmers and the cooperative partners at bean origin.

“We are constantly evolving,” added Bob Garver. “Our close relationships with the farmers that grow our beans provide so many opportunities for sustainable business practices, education and above all else, inspiration for the next cup of joe.”
Wicked Joe’s new packaging is available in stores now. Visit www.wickedjoe.com for more information.

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