Royal Cup Coffee and Tea announced that it has entered into a definitive agreement to acquire the publicly traded coffee roaster, wholesaler, and distributor Farmer Brothers Coffee Co. in an all-cash transaction valued at $1.29 per share (valued at about $28 million).
The deal will combine two long-standing companies in the coffee and tea industry, representing nearly 250 years of combined experience, and is designed to expand Royal Cup’s national reach across foodservice, hospitality, healthcare, convenience store, and retail markets.
The transaction will bring together roasting, distribution, and equipment service operations to form a broader national platform capable of supporting customers across multiple channels. Royal Cup expects the combined organization to strengthen its ability to deliver integrated beverage solutions by combining roasting expertise with route-based distribution and equipment service capabilities.
Royal Cup said the acquisition aligns with its long-term growth strategy and will enhance its infrastructure, operational scale, and customer reach. The combined organization is expected to expand direct store delivery capabilities, improve equipment service coverage, and strengthen supply chain operations while increasing manufacturing capacity.
The announcement builds on Royal Cup’s December 2025 partnership with Dallas-based private equity firm Braemont Capital, which provided capital and operational support to accelerate the company’s expansion initiatives. The acquisition of Farmer Brothers represents a continuation of that strategy to build a larger and more scalable national coffee and tea platform.
Farmer Brothers, founded in 1912, is a national coffee roaster and distributor serving a wide range of U.S. customers including independent restaurants, foodservice operators, grocery chains, hospitality providers and institutional buyers. The company offers coffee, tea and culinary products and operates several brands including Farmer Brothers, Boyd’s Coffee, SUM>ONE Coffee Roasters, West Coast Coffee, Cain’s and China Mist.
Royal Cup, founded in 1896, manufactures and distributes coffee and tea products across the United States, Mexico and the Caribbean. The company serves customers in foodservice, hospitality, convenience, office and specialty coffee markets.
The transaction is expected to close in the second quarter of 2026, subject to approval by a majority of Farmer Brothers shareholders and other customary closing conditions.
Support: Stephens Inc. is serving as financial advisor and Kirkland & Ellis LLP is acting as legal advisor to Royal Cup and Braemont Capital. North Point Mergers and Acquisitions, Inc. is serving as financial advisor and Winston & Strawn LLP is acting as legal advisor to Farmer Brothers.
KEY QUOTES
“This is a transformational and strategic step, which we believe materially strengthens our competitive position and advances our long-term growth strategy. 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.”
Chip Wann, President And Chief Executive Officer, Royal Cup
“Farmer Brothers and Royal Cup have both been distinguished coffee distributors for more than a century. 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.”
John Moore, President And Chief Executive Officer, Farmer Brothers
“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. 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.”
Wali Bacdayan, Partner, Braemont Capital
