Farmer Brothers Coffee Co., a public Fort Worth company, is set to be acquired in an all-cash deal.
The company — which made headlines for relocating its headquarters to Texas from California — has entered into an agreement to be taken over by Royal Cup Coffee & Tea of Birmingham, Ala.
With the deal, Royal Cup is paying $1.29 per share for the company, according to a statement on Wednesday. That’s below the close of $1.51 on Tuesday and puts the price tag at less than $30 million, based on the number of outstanding shares listed at the end of the quarter ended Dec. 31.
The stock was trading at $1.24 around 1:40 p.m. Wednesday.
Farmer Brothers had already slimmed down before this move, selling off its Northlake coffee facility for roughly $100 million in 2023. It also said its remaining direct store delivery business would move to its Portland roasting and production plant even as it maintained its headquarters in North Texas.
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In 2024, it entered into a lease for a roughly 25,000-square-foot site in Fort Worth for its new headquarters.
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Founded in 1912, Farmer Brothers is a national roaster, wholesaler and distributor of coffee, tea and allied products. Its brands include Boyd’s Coffee, West Coast Coffee and China Mist. Royal Cup manufactures and distributes coffee and tea, and got an investment from Braemont Capital at the end of last year.
“This transaction will allow Royal Cup and Farmer Brothers to combine our complimentary capabilities and build a more resilient national organization with the infrastructure and products necessary to better support our growing customer base across multiple channels,” Royal Cup Chief Executive Officer Chip Wann said in the statement. “Farmer Brothers has built an extraordinary legacy over the last 114 years …”
The transaction is expected to close during the quarter ending June 30, subject to certain conditions in the agreement, including the approval of a majority of Farmer Brothers’ shareholders and other customary conditions.
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