Farmer Bros. Agrees to Purchase Boyd Coffee Co.

NORTHLAKE, Texas — Farmer Bros. Co. will acquire substantially all the assets of Boyd Coffee Co. with a combination of cash and stock. It expects to improve overall operational efficiency by moving the production volume associated with the acquired Boyd business into its existing production facilities.

The transition and integration of Boyd's is expected to take place over the next 12 to 18 months.

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

Portland, Ore.-based Boyd's has operated for more than 100 years as a privately held company. Its 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.

In the past 12 months, Boyd's generated revenue of approximately $95 million and processed and sold about 16 million pounds of green coffee, according to the announcement. Boyd's coffee sales accounted for approximately 65 percent of revenue, with the remainder primarily coming from other beverages and accessories.

"We are confident Farmer Brothers is the right company to take the Boyd's brand to the next level," said Jeffrey Newman, CEO of 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 Co. for over 100 years."

Randy Clark, chairman of the board at Farmer Brothers, said that the company is in a strong position to benefit from ongoing coffee industry consolidation by executive 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," Clark said. "I congratulate Company management for identifying this transaction in pursuit of long-term growth for our stockholders."

Northlake-based Farmer Brothers is a national coffee roaster, wholesaler and distributor of coffee, tea and culinary products.