Royal Cup to Acquire Farmer Brothers Coffee

The all-cash transaction will expand Royal Cup's national reach and strengthen its capabilities across foodservice and retail channels.

Published on Mar. 4, 2026

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Birmingham-based Royal Cup Coffee and Tea is purchasing Texas-based Farmer Brothers Coffee and Tea in an all-cash transaction expected to close by June 30, 2026. The purchase will expand Royal Cup's national footprint and enhance its product offerings and distribution capabilities across multiple channels.

Why it matters

The acquisition represents a strategic move by Royal Cup to grow its business and better compete in the highly competitive coffee and tea industry. The combined company will have a stronger national presence and greater economies of scale to better serve customers.

The details

Under the terms of the agreement, Royal Cup will acquire all outstanding shares of Farmer Brothers for $1.29 per share. The purchase will allow Royal Cup to combine its expertise and operational excellence with Farmer Brothers' capabilities, enhancing manufacturing, production, distribution, and customer service.

  • The all-cash transaction is expected to close by June 30, 2026.
  • Royal Cup partnered with private equity firm Braemont Capital in December 2025 to provide additional capital for the acquisition.

The players

Royal Cup Coffee and Tea

A Birmingham-headquartered coffee roaster, wholesaler, and distributor serving the foodservice, hospitality, convenience, office, and specialty coffee markets since 1896.

Farmer Brothers Coffee and Tea

A Texas-based coffee roaster, wholesaler, equipment servicer, and distributor of coffee, tea, and culinary products, including organic, direct trade, and sustainably produced offerings.

Chip Wann

President and CEO of Royal Cup.

John Moore

President and CEO of Farmer Brothers.

Braemont Capital

A private equity firm that partnered with Royal Cup in December 2025 to provide additional capital for the acquisition.

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What they’re saying

“This is a transformational and strategic step, which we believe materially strengthens our competitive position and advances our long-term growth strategy.”

— Chip Wann, President and CEO, Royal Cup (businessalabama.com)

“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.”

— John Moore, President and CEO, Farmer Brothers (businessalabama.com)

What’s next

The acquisition is expected to close by June 30, 2026, pending regulatory approvals and other customary closing conditions.

The takeaway

The purchase of Farmer Brothers by Royal Cup represents a strategic move to expand the combined company's national reach, product offerings, and operational capabilities in the highly competitive coffee and tea industry.