Reviewed by: Caleb Turrentine
Alabama-based Royal Cup expands with purchase of Farmer Brothers Coffee
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Birmingham’s Royal Cup Coffee & Tea announced it has agreed to acquire national coffee roaster, wholesaler and distributor Farmer Brother Coffee Co.
The agreement combines the strengths of two established coffee and tea companies—which represent nearly 250 years of combined industry experience—and is expected to help Royal Cup expand its national reach in foodservice and retail.
Royal Cup acquiring Farmer Brothers Coffee Co.
Two major coffee manufacturers and distributors are teaming up to share industry experience, align service operations and expand their operational reach.
With roots dating back to 1896, Royal Cup Coffee & Tea is a Birmingham-based, family-owned business that manufactures and distributes premium coffee and tea throughout the United States, Mexico and the Caribbean. Founded in California in 1912, Farmer Brother Coffee Co. specializes in organic, Direct Trade and sustainably produced coffee alongside cappuccino mixes, spices and baking/biscuit mixes.
Royal Cup will acquire all outstanding shares of Farmer Brothers for $1.29/share in an all-cash transaction expected to close in the second quarter of 2026, subject to approval by a majority of Farmer Brothers’ shareholders and other customary closing conditions.
“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
The agreement between Royal Cup and Farmer Brothers will allow Royal Cup to expand its national reach and strengthen its capabilities across foodservice and retail channels.
“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
The acquisition of Farmer Brothers was supported by additional capital and operational support from Braemont Capital, the Dallas-based private equity firm that recently invested in the company to “help position [Royal Cup] for accelerated innovation, expansion and service.”
“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 at Braemont Capital
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