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Royal Cup Coffee and Tea has agreed to acquire US coffee roaster and distributor Farmer Brothers Coffee in an all-cash transaction that will combine two long-standing players in the US coffee and tea market.
Under the terms of the agreement, Royal Cup will acquire all outstanding shares of Farmer Brothers for $1.29 per share. The deal values the company’s equity based on its total outstanding shares and is expected to close in the second quarter of 2026, subject to shareholder approval and customary closing conditions.
The transaction will bring together two companies with nearly 250 years of combined industry experience and expand Royal Cup’s national footprint across foodservice and retail channels.
The combined organisation is expected to integrate roasting, distribution and equipment service operations to serve sectors including hospitality, healthcare, convenience retail and private label customers.
Following completion, the combined company plans to expand direct store delivery operations, strengthen equipment service coverage and increase manufacturing capacity while enhancing supply chain capabilities across the US coffee and tea market.
Royal Cup president and CEO Chip Wann said the acquisition represents a strategic move to strengthen the company’s competitive position and support long-term growth.
“This transaction will allow Royal Cup and Farmer Brothers to combine our complementary capabilities and build a more resilient national organisation with the infrastructure and products necessary to better support our growing customer base across multiple channels,” he said.
Farmer Brothers president and CEO John Moore said the combination of the two companies’ manufacturing, distribution and operational expertise would improve service for customers across the US.
“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,” Moore added.
The acquisition follows Royal Cup’s partnership with Dallas-based private equity firm Braemont Capital in December 2025, which provided capital and operational support to accelerate expansion plans.
Braemont Capital partner Wali Bacdayan said the deal would create a larger platform with integrated roasting, route-based distribution and equipment service capabilities designed to support customers nationwide.
