Green Mountain Coffee Roasters to acquire Tully's
September 16, 2008
by FoodBusinessNews.net Staff
WATERBURY, VT. — Green Mountain Coffee Roasters, Inc. announced the company has reached an agreement to acquire the Tully’s coffee brand and business from Tully’s Coffee Corp. for $40.3 million.
"Green Mountain Coffee Roasters is delighted to be adding an outstanding specialty coffee brand such as Tully’s to our coffee roasting family," said Lawrence J. Blanford, president and chief executive officer. "Tully’s will provide G.M.C.R. with a complementary West coast brand and business infrastructure, furthering our plans to establish the company and its proprietary Keurig Single-Cup Brewing system throughout North America."
The transaction is subject to closing conditions, including shareholder approval, but is expected to close by the end of 2008. After the acquisition, Tully’s Coffee Corp. will remain an independent company, and Tully’s retail business will operate under license and supply agreements with G.M.C.R.
"I have great respect for Green Mountain and their commitment to produce a quality product coupled with their concern and care for all their employees," said Tom T. O’Keefe, Tully’s founder and chairman of the board. "They are a wonderful company that understands and respects the strength of the Tully’s brand, products and existing customer base. They will be excellent stewards of all three. Most importantly, we believe this is an excellent opportunity for our shareholders to receive great value for the Tully’s wholesale business and brand assets. We also believe the remaining retail and international assets will return addition value to our shareholders."
Tully’s wholesales sales for the year ended June 30 were $30.4 million, up about 35%.