OAK BROOK, Ill., USA – TreeHouse Foods, Inc. announced that it has completed the acquisition of the Northlake, Texas, coffee facility and non-Direct Store Delivery coffee business (referred to as Direct Ship) from Farmer Brothers Company (Nasdaq: FARM) for approximately $100 million.
The state-of-the-art Northlake facility, built in 2017, brings roasting, grinding, flavoring and blending capabilities to the TreeHouse Foods portfolio to complement the Company’s existing single-serve pod and ready-to-drink coffee businesses.
The acquisition enables TreeHouse Foods to deliver greater category depth in an end-to-end private label coffee offering – from bagged whole bean and ground coffee to pods and ready-to-drink beverages.
“I want to welcome the newest members of our coffee team,” said Steve Oakland, Chairman, CEO and President of TreeHouse Foods.
“Acquiring the Northlake, Texas facility enables us to drive greater category depth through green coffee purchasing, roasting, grinding, flavoring and assortment – and represents an exciting step forward as we strengthen our strategic capabilities as a focused, private label snacking and beverages leader. By becoming more vertically integrated in coffee, we are better positioned to drive mutually profitable growth for our customers and deliver greater value to our shareholders.”
Farmer Brothers has historically been a bulk ground coffee supplier to TreeHouse Foods for single-serve pods and ready-to-drink beverages. Following closing, the acquisition is expected to create greater profit capture in the supply chain. TreeHouse Foods will also assume select customer relationships and retain approximately 180 team members from Farmer Brothers to support operations at the facility.
Approximately $30 million of inventory was acquired, and the acquisition was financed under the TreeHouse Foods revolving credit facility. Additional financial terms of the transaction were not disclosed.
