Farmer Bros. Says To Acquire Rae' Launo's Delivery, Coffee Distribution Assets

(RTTNews) - Farmer Brothers Co. (FARM), a maker and distributor of coffee products as well as condiments, Monday said it agreed to acquire the direct-store delivery and in-room distribution coffee businesses of Rae' Launo Corp. in a $1.5 million deal, which Farmer Bros. expects will bolster its presence in the Southeastern United States and the hospitality sector.

Farmer Bros. CEO, Michael Keown, said in a press release that the acquisition will allow Farmer Bros. to "address gaps in our distribution network, broaden our exposure to the hospitality in-room business, and improve customer penetration in the Southeast."

Farmer Bros. further said the Rae' Launo's senior management team has agreed to join the company to aid with customer transition. The company expects the acquisition to close by the end of the year.