In an effort to jump-start its long-struggling commercial coffee operations, Farmer Bros. Co. has agreed to acquire the Superior Coffee brand and sales network, almost doubling the size of its business.
The $45-million purchase from food giant Sara Lee Corp. would give Torrance-based Farmer Bros. annual revenue of about $500 million, a large roasting plant in Houston and a distribution and spice facility in Oklahoma City.
In addition to Superior Coffee, Farmer Bros. would pick up the Cain's, Ireland, Justin Lloyd, McGarvey, Metropolitan, Prebica, Suntipt (U.S. only), Wechsler, Cafe Royal and Royal Kona coffee brands from Sara Lee.
Sara Lee said earlier this year that it planned to sell the portion of its coffee business that it calls U.S. Direct Store Delivery Foodservice. The division had revenue of $228 million during the 2008 fiscal year. Sara Lee will hold on to its Douwe Egberts and Java Coast brands -- about $400 million worth of business.
clipped from: www.latimes.com