This excerpt taken from the GMCR 8-K filed Nov 13, 2009.
- Company Raises Sales and Earnings Estimates to Reflect Acquisition -
WATERBURY, VT (November 13, 2009) Green Mountain Coffee Roasters, Inc. (NASDAQ: GMCR) announced today that the Company has acquired Timothys Coffees of the World, Inc. (Timothys) from an affiliate of Sun Capital Partners, Inc. for a cash purchase price of approximately $157 million, in U.S. dollars, subject to adjustment.
The acquisition includes the Timothys World Coffee® brand and wholesale business (but does not include retail operations), and will be maintained as a wholly owned Canadian subsidiary, with operations integrated into GMCRs Specialty Coffee Business Unit. GMCR anticipates the acquisition will be accretive to its earnings per share in fiscal year 2010.
Headquartered in Toronto, Ontario, Timothys is a premium coffee company that produces specialty coffee, tea and other beverages in a variety of packaged forms. Additionally, Timothys produces K-Cup® portion packs for the Keurig® Single-Cup Brewing System sold under the Timothys World Coffee®, Emerils and Kahlua® Original K-Cup brands. Timothys became a licensed roaster of Keurig, Incorporated, a wholly owned subsidiary of GMCR, in 2000.
Lawrence J. Blanford, President and Chief Executive Officer of GMCR said, Timothys is a great addition to GMCRs family of brands. We have been collaborating together since they became a Keurig licensee and know the company is a great strategic and cultural fit. We believe that Timothys, along with our Green Mountain Coffee brand, will contribute meaningfully to our future success in Canada and throughout North America.
Blanford continued, This acquisition will provide GMCR with a Canadian presence and a coffee roasting facility in Toronto. It will accelerate GMCRs geographic expansion with a Canadian brand platform that includes manufacturing and distribution synergies. The retail portion of the Timothys business has been purchased by Brueggers Enterprises, Inc. and will continue to support the Timothys brand across Canada. Our acquisition includes a five-year coffee supply agreement with Brueggers
Canadian affiliate and we look forward to our expanding relationship with them as we already supply all of their 290 locations in the U.S.
Blanford concluded, Timothys wholesale business and brand is a landmark international acquisition for GMCR representing the accomplishment of a key goal: to further optimize the Keurig opportunity and our family of brands across North America.
The Companys revised estimates, as a result of the Timothys acquisition, are provided below. Changes reflect increases over GMCRs previous estimates provided on November 11, 2009 in the Companys 2009 fiscal fourth quarter and year-end earnings release and conference call: