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Monday, April 12, 2021

Farmer Brothers acquires Boyd Coffee

Northlake-based Farmer Bros. Co. on Aug. 21 announced it has reached an agreement to acquire Boyd Coffee Co. for $42 million in cash and 21,000 shares of preferred stock, leading to an estimated purchase price of $58.6 million.

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

Boyd generated revenues of approximately $95 million and sold about 16 million pounds of green coffee during the previous twelve-month period. Boyd’s coffee sales accounted for approximately 65% of revenue with the remainder of revenue primarily coming from other beverages and accessories.Once fully integrated, Farmer Brothers currently expects the transaction to deliver between $13 to $16 million in annual incremental adjusted EBITDA, according to Farmer Brothers. Portland, Oregon—based Boyd is a privately-held company in business for over 100 years with a national reputation in the coffee industry, according to a Farmer Brothers news release.

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,” said Randy Clark, chairman of the board at Farmer Brothers. “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. I congratulate company management for identifying this transaction in pursuit of long-term growth for our stockholders.”

The transaction is expected to close in the fourth quarter of calendar 2017, subject to certain closing conditions.

Latham & Watkins LLP is acting as legal advisor to Farmer Brothers.

Farmer Brothers trades on the NASDAQ under the FARM symbol.

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