TreeHouse To Acquire Farmer Brothers' Northlake Coffee Facility For Around $100 Mln

(RTTNews) - TreeHouse Foods, Inc. (THS), announced on Wednesday that they have entered into a definitive agreement with Farmer Brothers Co. (FARM), a coffee and tea company, to acquire their Northlake, Texas coffee facility and the Farmer Brothers non-Direct Store Delivery coffee business for approximately $100 million. The deal will be closed within the next 60 days.

The coffee facility, which was built in 2017, brings roasting, grinding, flavoring, and blending capabilities to the TreeHouse Foods portfolio.

The acquisition will help TreeHouse Foods to deliver end-to-end private-label coffee offering to its customers and complement the company's existing single-serve pod and ready-to-drink coffee businesses.

Farmer Brothers have been supplying bulk ground coffee to the company for its single-serve pods and ready-to-drink beverages. Following the acquisition, it is expected to create greater profit in the supply chain.

The company will also retain around 180 team members from Farmer Brothers to support operations at the facility and will assume select customer relationships.

On Tuesday, shares of TreeHouse closed at $47.47 down 0.21% or $0.10 on the New York Stock Exchange. In premarket activity, shares of Farmer Brothers are trading at $2.72 up 40.93% or $0.81 on the Nasdaq.