GMCR Buys Canadian Coffee Company

Green Mountain Coffee Roasters Inc. acquires Timothy's Coffees of the World Inc. from an affiliate of Sun Capital Partners Inc. for a cash purchase price of approximately $157 million, in U.S. dollars, subject to adjustment.The acquisition includes the Timothy's World Coffee brand and wholesale business (but does not include retail operations), and will be maintained as a wholly-owned Canadian subsidiary, with operations integrated into GMCR's Specialty Coffee Business Unit. GMCR anticipates the acquisition will be accretive to its earnings per share in fiscal year 2010.

 

Headquartered in Toronto, Ontario, Timothy's is a premium coffee company that produces specialty coffee, tea and other beverages in a variety of packaged forms. Additionally, Timothy's produces K-Cup portion packs for the Keurig Single-Cup Brewing System sold under the Timothy's World Coffee, Emeril's and Kahlua Original K-Cup brands. Timothy's became a licensed roaster of Keurig Incorporated, a wholly-owned subsidiary of GMCR, in 2000.

 

Lawrence J. Blanford, president and chief executive officer of GMCR, says, "This acquisition will provide GMCR with a Canadian presence and a coffee roasting facility in Toronto. It will accelerate GMCR's geographic expansion with a Canadian brand platform that includes manufacturing and distribution synergies."