TORRANCE, Calif. — Farmer Bros. Co. signed a definitive agreement to purchase Rae' Launo Corp.'s (RLC) assets related to its direct-store-delivery (DSD) business, which primarily serves convenience stores in the Southeast, and its in-room distributor channel, which primarily serves the hospitality industry.
"RLC, with its well-earned reputation in the Florida and southern Georgia region, is a great fit for Farmer Brothers, allowing us to address gaps in our distribution network, broaden our exposure to the hospitality in-room business, and improve customer penetration in the Southeast," said Farmer Bros. President and CEO Michael Keown. "We are excited to welcome the people who built that excellent reputation into the Farmer Bros. family."
The $1.5-million acquisition will give Farmer Bros. additional customers. RLC recorded $3.6 million in annual revenue in 2013.
"Joining Farmer Bros., with its strong DSD network and national market leadership, is a great opportunity for our DSD customers and hospitality distributors," said RLC President Ben Rayfield. "It will provide us an even greater advantage to reach new customers and expand our product offerings to existing customers."
RLC's senior management team agreed to join Farmer Bros. and help promote a smooth customer transition. The acquisition is expected to close by the end of 2014.
"I'm looking forward to working with Ben and his team to further build out the Farmer Brothers presence in the Southeastern region," said Tom Mortensen, senior vice president, route sales, who will lead the integration process. "Our first priority after the closing will be to maintain excellent customer service."
Founded in 1912, Farmer Bros. Co. is a manufacturer, wholesaler and distributor of coffee, tea and culinary products. The company services c-stores, restaurants, grocery stores and other retailers and foodservice providers.