Royal Cup to Acquire Farmer Brothers in $28 Million Deal, Combining Coffee Industry Heritage
March 8 - 2026
Coffee Geography Magazine
Royal Cup Coffee and Tea has reached a definitive agreement to acquire its publicly traded competitor, Farmer Brothers Coffee Co. The all-cash transaction, valued at approximately $28 million, will unite two of the nation’s most historic coffee roasters under a single banner.
The deal, which prices Farmer Brothers shares at $1.29 each, brings together companies with a combined 250 years of experience in the coffee and tea sector. Royal Cup, founded in 1896 and headquartered in Birmingham, Alabama, will absorb the operations of Farmer Brothers, a national roaster and distributor established in 1912. The acquisition is designed to significantly expand Royal Cup’s footprint across the foodservice, hospitality, healthcare, convenience store, and retail markets on a national scale.
By combining their respective roasting, distribution, and equipment service operations, the companies aim to create a broader, more resilient national platform. Royal Cup leadership indicated that the merger will enhance its ability to deliver integrated beverage solutions, leveraging expanded route-based distribution and comprehensive equipment service capabilities to better support a diverse and growing customer base. The combined organization is expected to see improvements in direct store delivery, equipment service coverage, and overall supply chain strength, alongside increased manufacturing capacity.
This strategic acquisition follows Royal Cup’s partnership with Dallas-based private equity firm Braemont Capital in December 2025. That collaboration provided the capital and operational support necessary to accelerate Royal Cup’s growth initiatives, with the purchase of Farmer Brothers representing a key milestone in executing that long-term vision.
Farmer Brothers, known for its portfolio of brands including Boyd’s Coffee, China Mist, and Cain’s, serves a wide array of U.S. customers, from independent restaurants and grocery chains to large institutional buyers. Once integrated with Royal Cup’s established presence in the foodservice, office, and specialty coffee markets, the company expects to forge a more formidable competitor in the industry.
Chip Wann, President and Chief Executive Officer of Royal Cup
"This is a transformational and strategic step, which we believe materially strengthens our competitive position and advances our long-term growth strategy," said Chip Wann, President and Chief Executive Officer of Royal Cup. "This transaction will allow Royal Cup and Farmer Brothers to combine our complementary capabilities and build a more resilient national organization with the infrastructure and products necessary to better support our growing customer base across multiple channels."
John Moore, President and Chief Executive Officer of Farmer Brothers, echoed the sentiment, highlighting the natural fit between the two century-old companies. "Farmer Brothers and Royal Cup have both been distinguished coffee distributors for more than a century," Moore said. "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."
The transaction is expected to close in the second quarter of 2026, pending approval by a majority of Farmer Brothers shareholders and the satisfaction of other customary closing conditions. Royal Cup and Braemont Capital are being advised financially by Stephens Inc. and legally by Kirkland & Ellis LLP, while Farmer Brothers is receiving financial advice from North Point Mergers and Acquisitions, Inc. and legal counsel from Winston & Strawn LLP.