BIRMINGHAM, Ala., March 5 — Royal Cup Coffee and Tea (“Royal Cup”), a leading manufacturer and distributor of premium coffee and tea, announced today that it has entered into a definitive agreement to acquire Farmer Brothers Coffee Co. (NASDAQ: FARM) (“Farmer Brothers” or the Company), a national coffee roaster, wholesaler and distributor. As part of the transaction, Royal Cup will acquire all outstanding shares of Farmer Brothers stock in an all-cash transaction.
The agreement brings together two established coffee and tea organizations, representing nearly 250 years of combined industry experience, and will expand Royal Cup’s national reach and strengthen its capabilities across foodservice and retail channels.
The transaction will align roasting, distribution and equipment service operations into a broader national organization positioned to serve foodservice, hospitality, health care, convenience stores, retail and private label customers with expanded scale and operational reach.
“This is a transformational and strategic step, which we believe materially strengthens our competitive position and advances our long-term growth strategy,” said Royal Cup President and Chief Executive Officer Chip Wann. “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.”
Royal Cup enters the agreement supported by a diversified customer base and sustained performance across its expanding national footprint. The acquisition will enhance Royal Cup’s ability to deliver integrated beverage solutions that combine roasting expertise, route-based distribution and equipment service within a unified operating structure.
“Farmer Brothers and Royal Cup have both been distinguished coffee distributors for more than a century,” said Farmer Brothers President and Chief Executive Officer John Moore. “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.”
The transaction, once completed, builds on Royal Cup’s December 2025 partnership with Dallas-based private equity firm Braemont Capital, which provided additional capital and operational support to advance strategic expansion initiatives. Today’s agreement reflects continued execution of that strategy and reinforces Royal Cup’s focus on disciplined growth and scalable infrastructure.
“We are excited to back Royal Cup in this important milestone and to partner with Farmer Brothers as they come together to build a stronger, more scaled platform,” said, Wali Bacdayan, Partner at Braemont Capital. “The integration of their complementary roasting, route-based distribution and equipment services capabilities will create a more diversified and durable organization with the infrastructure to support customers nationwide.”
Following closing, the combined organization will be positioned to expand direct store delivery (DSD), equipment service coverage and manufacturing capabilities, as well as enhance its supply chain capabilities and strengthen its presence across key growth channels in the national coffee and tea markets.