Boyd’s is a privately-held company that has been in business for more than 100 years. Its business model is expected to be complementary to Farmer Brothers across customer channels, product portfolios and distribution networks.
Boyd’s generated revenue of approximately US$95 million and processed and sold about 16 million pounds of green coffee in the last 12 months.
Boyd’s coffee sales accounted for approximately 65 per cent of revenue with the remainder of revenue primarily coming from other beverages and accessories.
“We believe the Boyd’s business will be an excellent strategic fit for Farmer Brothers,” said Mike Keown, Chief Executive Officer of the company. “We expect this acquisition will strengthen our position in the marketplace, expand our distribution footprint, and generate significant synergies.”
“We are confident Farmer Brothers is the right company to take the Boyd’s brand to the next level,” said Jeffrey Newman, Chief Executive Officer at 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 Company for over 100 years.”
The purchase price consists of up to US$42 million in cash and 21,000 shares of a new series of preferred stock subject to adjustments for working capital and certain hold-backs of cash and stock.