Birmingham-headquartered Royal Cup Coffee and Tea is purchasing Texas-based Farmer Brothers Coffee and Tea in an all-cash transaction that is expected to close by June 30, 2026. Under the terms of the agreement, Royal Cup will acquire all outstanding shares of Farmers Brothers for $1.29 per share.
The purchase will expand Royal Cup’s national reach and strengthen its capabilities across foodservice and retail channels, according to the company. Royal Cup has been serving customers in the food service, hospitality, convenience, office and specialty coffee markets since 1896.
“This is a transformational and strategic step, which we believe materially strengthens our competitive position and advances our long-term growth strategy,” said Royal Cup President and CEO Chip Wann. “This transaction will allow Royal Cup and Farmers 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.”
Farmer Brothers President and CEO John 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.”
Founded in 1912, Farmer Brothers is a coffee roaster, wholesaler, equipment servicer and distributor of coffee, tea and culinary products. The company’s product lines include organic, direct trade and sustainably produced coffee, as well as tea, cappuccino mixes, spices and baking/biscuit mixes.
The purchase comes after private equity firm Braemont Capital partnered with Royal Cup in December 2025, providing additional capital to the coffee roaster.
Stephens Inc. is serving as the financial advisor, and Kirkland and Ellis LLP is acting as the legal adviser to Royal Cup and Braemont Capital. North Point Mergers and Acquisitions Inc. is serving as the financial adviser and Winston & Strawn LLP is acting as legal adviser to Farmer Brothers.
