US-based Farmer Brothers Coffee has started a process to explore “strategic” options focused on “maximising” shareholder value.
In a statement yesterday (21 July), the owner of the Farmer Brothers and Boyd’s Coffee brands said it has made “significant progress in transforming its operations and improving its business performance” in the last two years,
Farmer Brothers sold assets worth approximately $100m to TreeHouse Foods in June 2023.
David Pace, the chairman of the company’s board, said, since that the deal, the group had 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, Farmer Brothers’ board has established a strategy committee comprising independent directors to assess a range of “strategic” options. The committee will provide recommendations to the full board.
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By GlobalDataThe company has hired 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, adding there is no guarantee it will result in any transaction or strategic outcome.
In the nine months ending 31 March, 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 restaurant chains, department stores and hotels.
The company also supplies grocery chains with private-label coffee, plus consumer-branded coffee and tea products.
