Torrance area coffee roaster Farmer Bros. Co. said Wednesday that it will undergo a major expansion by acquiring Sara Lee Corp.'s U.S. direct-store delivery Foodservice coffee business.
The $45-million deal will nearly double Farmer Bros.'s revenue, extend its reach to all 48 mainland states and make it the nation's largest direct-store delivery business for coffee and related products, the firm said.
Farmer Bros. currently operates in 29 states, selling to restaurants and other institutional customers.
The transaction is expected to close in the first quarter of next year, financed by Farmer Bros. cash and debt.
"This acquisition will allow us to quickly achieve our long-term goals of coast-to-coast market penetration, cost reductions and margin improvements as a result of economies of scale, and improved returns on our invested capital," Farmer Bros. CEO Rocky Laverty said in a statement.
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