Royal Cup Coffee and Tea (“Royal Cup”), a leading manufacturer and distributor of premium coffee and tea, acquired Farmer Brothers Coffee Co (NASDAQ: FARM) (“Farmer Brothers”), a national coffee roaster, wholesaler and distributor.

“[This acquisition] officially marks the beginning of a new chapter for Royal Cup and Farmer Brothers — one built on decades of combined experience and a genuine dedication to the people and customers we serve,” said Chip Wann, president and CEO of Royal Cup. “I couldn’t be prouder of both organisations, and I look forward to the work ahead as we come together and grow.”

The transaction brings together two established coffee and tea organisations, expanding Royal Cup’s national reach and strengthening its presence across foodservice, hospitality and retail channels. It creates a cohesive route-based distribution and equipment service network spanning multiple channels – including healthcare, convenience and private label – across the United States, Caribbean, Mexico and Canada. The combined company will operate under the Royal Cup name and will be headquartered in Birmingham, Alabama.

The new combined company will be led by Chip Wann. As part of the closing, Farmer Brothers president and CEO John Moore, CFO Vance Fisher, and VP/general counsel Jared Vitemb will be exiting the company.

“This highly complementary acquisition accelerates Royal Cup’s strategy to build a scaled, national platform in the coffee industry,” said Wali Bacdayan, partner at Braemont Capital. “Since investing in Royal Cup, we have supported its execution of a disciplined, sustainable growth plan. The closing of this acquisition represents a significant milestone, and we look forward to continuing to support the team as they move into this next phase.”

Under the terms of the definitive agreement, Royal Cup acquired all outstanding shares of Farmer Brothers in an all-cash transaction. Stockholders approved the merger agreement proposal at a special meeting of Farmer Brothers stockholders on 1 May 2026, in connection with the previously announced definitive agreement between Farmer Brothers and Royal Cup.

Stephens Inc served as the financial advisor and Kirkland & Ellis LLP acted as legal advisor to Royal Cup and Braemont Capital. North Point Mergers and Acquisitions, Inc served as the financial advisor and Winston & Strawn LLP acted as the legal advisor to Farmer Brothers.