Royal Cup Coffee Acquires Farmer Brothers in $28 Million All-Cash Deal

Royal Cup Coffee & Tea has signed a definitive agreement to acquire Fort Worth-based Farmer Brothers Coffee Co. for $1.29 per share in an all-cash deal, placing the total transaction value at roughly $28 million based on the 21,720,306 shares Farmer Brothers had outstanding as of December 31. Upon closing, Farmer Brothers will be taken private and delisted from the NASDAQ Global Select Market, where it trades under the ticker FARM.

The transaction is expected to close during Farmer Brothers' fiscal fourth quarter ending June 30, pending approval from a majority of the company's shareholders and other customary conditions.

Together, the two B2B coffee suppliers bring nearly 250 years of combined industry experience to a combined platform that will serve foodservice, hospitality, health care, convenience stores, retail and private label customers. Royal Cup President and CEO Chip Wann framed the deal in direct terms: "This is a transformational and strategic step, which we believe materially strengthens our competitive position and advances our long-term growth strategy." Wann added that the transaction will allow both companies to "build a more resilient national organisation with the infrastructure and products necessary to better support our growing customer base across multiple channels."

Farmer Brothers President and CEO John Moore pointed to the roasting and sourcing heritage that each company brings to the table. "Farmer Brothers has always been dedicated to perfecting roasting techniques and sourcing practices to bring our customers the finest traditional, premium and specialty coffee," Moore said. He also noted that combining the two operations would ultimately deliver "enhanced manufacturing and production capabilities, an unmatched distribution network and greater economies of scale" to a nationwide customer base.

The deal arrives during a difficult financial period for the Fort Worth-based roaster and wholesaler. It also builds directly on Royal Cup's December 2025 partnership with Braemont Capital, a Dallas-based private equity firm that provided additional capital and operational support to accelerate Royal Cup's expansion strategy. Braemont Partner Wali Bacdayan described the acquisition as a platform-building opportunity. "We look forward to helping two of the leading experts in direct store delivery coffee operations come together to create a truly one-of-a-kind coffee, tea and beverage provider," Bacdayan said.

Once the deal closes, the combined organization intends to expand direct store delivery coverage, grow equipment service capabilities, and strengthen its manufacturing and supply chain infrastructure across the national coffee and tea market. Kirkland & Ellis LLP advised Royal Cup on the transaction, with a team that included corporate lawyers Thomas Laughlin, Jack Shirley, Lucas Spivey, Jordan Roberts and Steven Keithley, capital markets lawyers Julian Seiguer and Sara Lampert, and tax lawyer David Wheat.