Royal Cup Coffee and Tea to Acquire Farmer Bros. for $89.62 Million in Cash

Royal Cup Coffee and Tea entered a merger agreement on March 4, 2026, to acquire Farmer Bros. Co. (FARM) in a deal valued at $89.62 million.

Deal Structure:

Royal Cup will acquire all outstanding shares of Farmer Brothers for $1.29 per share in an all-cash transaction, representing a discount of 13.42% from the stock’s last close.

Company Profile:

Farmer Bros. is a U.S.-based coffee roaster and distributor that supplies coffee, tea, and culinary products to restaurants, foodservice operators, institutional buyers, and retail customers. The company also provides equipment servicing and distributes its products through direct delivery, third-party distributors, and online channels.

Royal Cup Coffee and Tea is a manufacturer and distributor of coffee and tea products serving foodservice, hospitality, convenience, office, and specialty retail customers across the United States, Mexico, and the Caribbean.

Deal Details and Timeline:

The deal is expected to close in the second quarter of 2026.

North Point Mergers and Acquisitions and Winston & Strawn are serving as financial advisor and legal counsel, respectively, to Farmer Bros. Stephens is acting as financial advisor, while Kirkland & Ellis is serving as legal counsel to Royal Cup Coffee and Tea.

Royal Cup Coffee and Tea is paying approximately 15.5 times EBITDA for Farmer Bros.

Deal Metrics:

For more comprehensive details related to this merger and acquisition transaction, please visit the following link:

Deal Metrics for the acquisition of Farmer Bros. Co. (FARM) by Royal Cup Coffee and Tea

The Deal Metrics page for each merger or acquisition includes:

• A chart detailing the spread history of the merger, from announcement to completion or failure.
• Key events as the merger progresses, including the expiration of the HSR period, regulatory approvals, shareholder votes, etc.
• Updates on news and SEC filings.
• A comprehensive history of deal updates.
• And much more detailed information.

Disclaimer: This article is not an endorsement to buy or sell any securities mentioned. Always conduct your own thorough research and due diligence before making investment decisions. The accuracy and completeness of the information provided in this article is not guaranteed.

Editor’s Note: Baranjot Kaur contributed to this article