Green Mountain Agrees to Acquire Tully's
Green Mountain Coffee Roasters Inc. (GMCR) executes an Asset Purchase Agreement to acquire the Tully's coffee brand and wholesale business from Tully's Coffee Corporation for a cash purchase price of $40.3 million, subject to adjustment at closing. Tully's wholesale business division distributes handcrafted coffees and related products via office coffee services, food service distributors and more than 5,000 supermarkets located primarily in the western states.
Lawrence J. Blanford, president and CEO of Green Mountain Coffee Roasters, says, "GMCR is delighted to be adding an outstanding specialty coffee brand such as Tully's to our coffee roasting family. Tully's will provide GMCR 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."
Tully's Coffee Corporation will remain an independent company, owned by its existing shareholders and managed by its existing management team, with a focus on its retail and international division assets. Tully's retail business will operate under license and supply agreements with GMCR. This arrangement is intended to create consistent representation of the Tully's brand while providing high quality gourmet coffee to all customers drinking Tully's branded coffee. Following the completion of this transaction, GMCR expects to integrate approximately 70 employees from Tully's wholesale business into its Green Mountain Coffee segment. GMCR will sublease from Tully's the portion of Tully's manufacturing and distribution center in Seattle, Wash. that is devoted to the wholesale business.
Lawrence J. Blanford, president and CEO of Green Mountain Coffee Roasters, says, "GMCR is delighted to be adding an outstanding specialty coffee brand such as Tully's to our coffee roasting family. Tully's will provide GMCR 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."
Tully's Coffee Corporation will remain an independent company, owned by its existing shareholders and managed by its existing management team, with a focus on its retail and international division assets. Tully's retail business will operate under license and supply agreements with GMCR. This arrangement is intended to create consistent representation of the Tully's brand while providing high quality gourmet coffee to all customers drinking Tully's branded coffee. Following the completion of this transaction, GMCR expects to integrate approximately 70 employees from Tully's wholesale business into its Green Mountain Coffee segment. GMCR will sublease from Tully's the portion of Tully's manufacturing and distribution center in Seattle, Wash. that is devoted to the wholesale business.