Royal Cup to Acquire Farmer Brothers for $1.29 Per Share, Take Private

Royal Cup Coffee & Tea of Birmingham will acquire all outstanding shares of Fort Worth-based Farmer Brothers Coffee Co. for $1.29 per share in an all-cash transaction that will take Farmer Brothers private, with the companies expecting the deal to close in the second quarter of 2026 subject to majority shareholder approval and customary closing conditions. Insidearbitrage reports the per-share price equates to an aggregate cash consideration of $89.62 million.

Chip Wann, identified as Royal Cup’s CEO, framed the deal as a growth move for the Birmingham-based company that serves foodservice, hospitality, convenience, office, and specialty retail customers across the United States, Mexico, and the Caribbean. “This is a transformational and strategic step, which we believe materially strengthens our competitive position and advances our long-term growth strategy. This transaction will allow Royal Cup and Farmer Brothers to combine our complementary capabilities and build a more resilient national organization with the infrastructure and products necessary to better support our growing customer base across multiple channels.”

John Moore, identified as Farmer Brothers’ CEO, highlighted the operational benefits for the Texas-based roaster and distributor, which Insidearbitrage and other reporting describe as a national coffee roaster, wholesaler, equipment servicer and distributor supplying restaurants, institutional buyers and retail customers through direct delivery, third-party distributors and online channels. “Farmer Brothers and Royal Cup have both been distinguished coffee distributors for more than a century. By combining our tremendous expertise and operational excellence, we will be able to ultimately better serve our nationwide customer base through enhanced manufacturing and production capabilities, an unmatched distribution network and greater economies of scale.”

Insidearbitrage provides additional valuation detail, reporting the $1.29-per-share offer represents a 13.42% discount to Farmer Brothers’ last close and that the purchase multiple is approximately 16.66 times EBITDA. That outlet also lists financial and legal advisors: North Point Mergers and Acquisitions and Winston & Strawn for Farmer Brothers; Stephens and Kirkland & Ellis for Royal Cup.

Al.com notes the acquisition follows a recent investment in Royal Cup from Dallas-based Braemont Capital made months earlier to provide money and operational support. Bham Now and Fort Worth INC. frame the transaction as combining nearly 250 years of industry experience and expanding Royal Cup’s national reach across foodservice and retail channels.

Aggregated headlines captured by Intellectia Ai include notices that Halper Sadeh, an investor-rights law firm, is investigating the sale; those headlines appear alongside multiple references to the $1.29-per-share cash transaction but provide no additional allegations in the excerpts provided. The deal remains conditioned on Farmer Brothers shareholders’ vote and other customary closing steps, with the companies signaling a Q2 2026 timetable for completion.