US-based Farmer Brothers Coffee has started a process to explore “strategic” options focused on “maximising” shareholder value.
In a statement released on 21 July, the owner of Farmer Brothers, Boyd’s Coffee, and SUM>ONE Coffee Roasters brands said that in the last two years, it has made “significant progress in transforming its operations and improving its business performance”.
Farmer Brothers, founded in 1912, sold assets worth approximately $100m to TreeHouse Foods in June 2023.
David Pace, chairman of the company’s board, said, since the 2023 sale, the group focused on “improving” financial and operational structure.
“We believe now is the right time to explore additional options that could allow us to more effectively maximise shareholder value,” Pace added.
As part of the review, the company’s board has established a strategy committee comprising independent directors to assess a wide range of “strategic” options. The committee will provide recommendations to the full board.
To assist in this process, Farmer Brothers has engaged North Point Mergers and Acquisitions as its financial advisor and Winston & Strawn as its legal counsel.
Farmer Brothers said its board has not set a specific timeline for the review process, and there is no guarantee that it will result in any transaction or strategic outcome.
The company added it will not disclose further developments regarding the review until it deems it necessary.
In the nine months ending 31 March 2025, Farmer Brothers reported net sales of $257.1m, a marginal increase from $256.6m in the same period the previous year.
However, the company recorded a net loss of $9.7m, compared to a profit of $717,000 in the prior year.
In a statement accompanying the results on 8 May, Farmer Brothers president and CEO John Moore said the team continues to do the work to “streamline operations, increase efficiencies and better manage our overall cost structure as we proactively work to navigate this challenging market environment”.
Farmer Brothers’ customer base includes small independent eateries and foodservice providers, as well as major institutional purchasers such as restaurant chains, department stores, and hotels.
Additionally, the company caters to grocery chains with private label coffee, consumer-branded coffee and tea products, and foodservice distributors.
“Farmer Brothers Coffee to weigh “strategic” options ” was originally created and published by Just Drinks, a GlobalData owned brand.
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