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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.


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.

Flagship Food Group Announces New Frozen Food Distribution Facility

Flagship Food Group CEO Rob Holland and New Mexico Governor Susana Martinez have announced that Flagship will further expand its manufacturing and distribution facilities in the Albuquerque area, creating a state-of-the-art, 76,000 square-foot frozen food distribution warehouse that will serve its customers from coast to coast from a single point of distribution. The new distribution facility will also feature a research and development center, offices, and a small interactive “museum” that pays tribute to New Mexico’s rich food culture.

Flagship’s popular 505 Southwestern® brand (“505” signifies Albuquerque’s area code) is produced in New Mexico and certified as a “New Mexico True” product. Nearly $100 million of 505 Southwestern®-branded products are sold from London to Los Angeles, spreading the awareness of New Mexico flavors and cuisine in 125,000 points of distribution throughout the world.

“We are grateful for the support and business-friendly environment that New Mexico has given us,” said Holland. “Our new distribution facility in New Mexico will help us better serve our customers and represents another important step in the growth and development of our company.”

“Since day one, we’ve been fighting hard to make New Mexico more competitive with surrounding states through reforms like cutting taxes and streamlining regulations,” Governor Martinez said. “Results like these mean more jobs for New Mexicans, and give us even more momentum to build on as we keep working to grow and diversify our economy.”

The facility represents a collaboration between Flagship’s diverse leadership team. Carlos Angulo, the Company’s Chief Operating Officer, led the project with support from the President of the Flagship Logistics division, Pat O’Keefe, and other company executives. The warehouse will operate with a state-of-the-art inventory tracking system currently utilized in Flagship’s other warehouse facility.

“As our Southwestern food portfolio has doubled in size in only a few short years, we needed a facility that would warehouse our products and support our customers across the country with extreme efficiency and reliability. Working with our amazing team of operators and professionals, we’ve taken the project from concept to a fully-operational facility in less than one year,” said Angulo.

SunRidge Farms Energy Chews Offer Superfoods for Energy

SupergreensSunRidge Farms‘ new Super Greens Energy Chews are like a green smoothie, except that they come in the form of a little snack cube. They’re made with spinach, broccoli, kale and spirulina along with coconut, apple and banana to provide 6 grams of vegetable protein per serving, which is a quarter cup of the cubes. They’re a good source of iron and vitamin C as well as fiber. They’re low in sodium and contain 0 g of trans fats and no genetically modified organisms or artificial ingredients.

cocoa macaFor a snack that’s a little nuttier, SunRidge Farms is offering its new Organic Chocolate Maca Energy Chews. These are made with superfoods maca root and spirulina along with nuts, seeds and Fair Trade Certified organic cocoa. A 1/4 cup of these little cubes offers 6 grams of protein and is a good source of iron and fiber. They’re cholesterol free and low in sodium.

kids mixkids mixSunRidge Farms’ all natural kids mix is also brand new. It’s a combination of dry roasted almonds, roasted peanuts, raisins, dried apples, milk chocolate peanut butter cups and Fair Trade Cocoa milk chocolate Rainbow Drops. The snack mix offers 4 grams of protein per 1/4-cup serving and is a good source of Vitamin E, magnesium and copper and an excellent source of manganese. It’s low in sodium and is made without artificial ingredients, preservatives or hydrogenated oils.

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