Farmer Brothers Coffee Co. has agreed to be acquired by Royal Cup Coffee and Tea. Under the terms of the agreement, Royal Cup will acquire all outstanding shares of Farmer Brothers for $1.29 per share in an all-cash transaction.
Farmer Brothers has been headquartered in Fort Worth since its 2024 move from Northlake following the sale of its direct ship business—including its facility in Northlake—to TreeHouse Foods for roughly $100 million. The company relocated to North Texas in 2017 from California, where the company had been based since its founding in 1912.
Its acquisition by Birmingham, Alabama-based Royal Cup will align roasting, distribution, and equipment service operations into a broader national organization designed to serve foodservice, hospitality, health care, convenience stores, retail, and private label customers with “expanded scale and operational reach,” the companies said.
Photo: Royal Cup Coffee & Tea
“Farmer Brothers has always been dedicated to perfecting roasting techniques and sourcing practices to bring our customers the finest traditional, premium and specialty coffee,” said Farmer Brothers President and CEO John Moore.
“We’re driven by the belief that connections are built over coffee, and this transaction is a true example as it will combine Farmer Brothers and Royal Cup—two long-standing industry giants,” Moore added in a statement. “Bringing together more than 250 years of coffee expertise, it allows us to enhance our manufacturing and production capabilities, expand our already industry-leading nationwide distribution network, create even greater economies of scale and ultimately better serve our customers.”
Better equipped for expansion
“This is a transformational and strategic step, which we believe materially strengthens our competitive position and advances our long-term growth strategy,” Royal Cup President and CEO Chip Wann said in a statement. “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.”
Dallas equity connection
The transaction is linked with 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.
“We’re 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 said it plans to expand direct store delivery, equipment service coverage, and manufacturing capabilities, as well as improve its supply chain capabilities and bolster its presence across key growth sectors in the national coffee and tea markets.
More deal details
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.
Stephens Inc. is serving as the financial advisor and Kirkland and Ellis LLP is acting as the legal advisor to Royal Cup and Braemont Capital. North Point Mergers and Acquisitions, Inc. is serving as the financial advisor and Winston & Strawn LLP is acting as the legal advisor to Farmer Brothers.
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Founded in 1896, Royal Cup's reach extends throughout the U.S., Mexico, and the Caribbean, serving customers in the food service, hospitality, office and specialty coffee markets.
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