Farmer Bros. Co. acquires Sara Lee’s Direct-Store-Delivery Coffee Business

« Back | Next »

Transactions

Farmer Bros. Co. has acquired Sara Lee’s Direct-Store-Delivery Coffee Business

Kerlin served as the financial advisor to Farmer Bros. Co. for the strategic acquisition of Sara Lee’s Direct-Store-Delivery Coffee Business (DSD). Kerlin has been the investment banker for Farmer Bros. since 2007 and has worked with the Company on a number of transactions. Farmer Bros. Co. is a publicly traded company based in Torrance, California. The acquisition of Sara Lee’s DSD Coffee Business provided a unique opportunity for Farmer Bros. to expand its production capabilities, achieve a national footprint and consolidate its position as the leading DSD coffee distributor.

Kerlin was involved in all aspects of this transaction including leading the analysis of the target acquisition and the development and negotiation of the purchase price. Working alongside Farmer Bros. management, Kerlin was part of a team that developed an integration plan and transition process which was very complex given that the business had to be disentangled from Sara Lee’s other businesses. As a result of the acquisition, Farmer Bros. is the nation’s largest direct-store-delivery coffee manufacturer and distributor. Along with granting the Company national market position, this acquisition provides Farmer Bros. with 20,000 additional customers and nearly doubles revenue. The Company is expected to realize significant cost savings in the future by eliminating duplicative costs and streamlining operations.