Farmer Brothers Announces Agreement to Acquire Boyd Coffee Company
Significantly Strengthens Market Presence Across Multiple Customer Segments and Geographies
Expected to be Accretive to Earnings Following Integration
Conference Call
NORTHLAKE,
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
The Company 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
“We are confident Farmer Brothers is the right company to take the Boyd’s brand to the next level,” said
Terms of Transaction
The purchase price consists of up to
Boyd’s generated revenues of approximately
In connection with this acquisition, the Company plans to amend its existing bank credit facility. We believe this incremental liquidity, together with existing sources of cash, will be sufficient to cover the acquisition price and related one-time costs to complete the transaction.
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.
Farmer Brothers will file a Current Report on Form 8-K with the
Conference Call
Management will host an investor conference call on
The webcast accompanied by presentation slides will be archived for approximately 30 days on the Investor Relations section of the Company's website, and will be available approximately two hours after the end of the live webcast.
About
Founded in 1912,
Headquartered in Northlake,
About
Boyd’s Coffee is one of the oldest family-owned coffee companies in the world. Founded in 1900 in
Forward-looking Statements
Certain statements in this press release constitute “forward-looking statements.” When used in this press release, the words “will,” “expects,” “anticipates,” “estimates” and “believes,” and similar expressions and statements that are made in the future tense or refer to future events or developments, are intended to identify such forward-looking statements. Such forward-looking statements are subject to risks, uncertainties and other factors that could cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements include, but are not limited to, statements regarding the achievement of the anticipated benefits of the acquisition, the ability of the Company to integrate the acquisition, the risk that any announcements relating to the acquisition could impact the market price of the Company’s common stock, and the risk that the transaction and its announcement could have an adverse effect on the ability of the parties to retain customers and retain and hire key personnel and maintain relationships with their suppliers, distributors and customers.
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1 A reconciliation of adjusted EBITDA to the closest GAAP financial measure is not available without unreasonable efforts on a forward-looking basis due to the complexity of allocating depreciation and amortization costs and other non-cash charges that might be associated with the estimated pro-forma operating costs resulting from this transaction. As such we have not provided a reconciliation of adjusted EBITDA to the closest GAAP financial measure.
Investor Contact:Laurie Little The Piacente Group, Inc. 212-481-2050 farmerbros@tpg-ir.com