TreeHouse Foods has signed a definitive agreement to purchase Farmer Brothers Co.’s Northlake, Texas, coffee facility and the non-direct store delivery (direct-ship) coffee business for approximately $100 million, according to a release from the private-label manufacturer.
The plant, which was built in 2017, features roasting, grinding, flavoring and blending capabilities. It will complement TreeHouse’s single-serve pod and ready-to-drink coffee businesses, bringing greater category depth to the company’s offerings.
TreeHouse further benefits by bringing the production of its bulk ground coffee in-house, as Farmer Brothers had been supplying this product for TreeHouse’s single-serve pods and ready-to-drink beverages. TreeHouse Foods will also assume select customer relationships and retain approximately 180 employees at the facility. The transaction is expected to close within the next 60 days.