(Bloomberg) -- Farmer Brothers Coffee Co. (NASDAQ: FARM) stockholders approved the proposed acquisition of the coffee roaster by Royal Cup, with the deal expected to close by May 6.
“We are pleased by the support shown by our stockholders for the combination of these two great companies,” Farmer Brothers President and Chief Executive Officer John Moore said in a statement. “Together with Royal Cup, we will expand our industry-leading nationwide distribution network, enhance our manufacturing and production capabilities and bring an unmatched portfolio of products, expertise and scale to our growing customer base.”
The approval was granted during a special stockholder meeting held on May 1. Upon completion of the transaction, Farmer Brothers, a company founded in 1912, will become a private entity, and its shares will be delisted from the NASDAQ Global Select Market. The terms of the acquisition were not disclosed.
The move combines two long-standing players in the U.S. coffee market. Royal Cup, founded in 1896, will integrate Farmer Brothers’ extensive distribution network and product lines, which include organic and Direct Trade coffee, tea, spices, and baking mixes.
“Farmer Brothers and Royal Cup have long shared a commitment to quality and excellence,” said Royal Cup President and Chief Executive Officer Chip Wann. “We are excited about the future of the combined company as we come together to create a truly one-of-a-kind direct store delivery coffee partner.”
The acquisition solidifies a major consolidation within the U.S. coffee distribution sector, combining Farmer Brothers’ nationwide reach with Royal Cup’s established presence in the food service, hospitality, and office markets. The combined entity aims to offer a more comprehensive portfolio to a wider range of customers, from independent restaurants to large institutional buyers.
The completion of the deal by May 6 remains subject to remaining customary closing conditions. For Farmer Brothers shareholders, the transaction’s finalization will mark the end of the company's public trading history and a shift to private ownership under Royal Cup.
This article is for informational purposes only and does not constitute investment advice.
