GMCR » Topics » - Company Raises Sales and Earnings Estimates to Reflect Acquisition -

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 Timothy’s Coffees of the World, Inc. (“Timothy’s”) 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 Timothy’s 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 GMCR’s Specialty Coffee Business Unit. GMCR anticipates the acquisition will be accretive to its earnings per share in fiscal year 2010.

Headquartered in Toronto, Ontario, Timothy’s is a premium coffee company that produces specialty coffee, tea and other beverages in a variety of packaged forms. Additionally, Timothy’s produces K-Cup® portion packs for the Keurig® Single-Cup Brewing System sold under the Timothy’s World Coffee®, Emeril’s and Kahlua® Original K-Cup brands. Timothy’s 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, “Timothy’s is a great addition to GMCR’s 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 Timothy’s, 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 GMCR’s geographic expansion with a Canadian brand platform that includes manufacturing and distribution synergies. The retail portion of the Timothy’s business has been purchased by Bruegger’s Enterprises, Inc. and will continue to support the Timothy’s brand across Canada. Our acquisition includes a five-year coffee supply agreement with Bruegger’s


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, “Timothy’s 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 Company’s revised estimates, as a result of the Timothy’s acquisition, are provided below. Changes reflect increases over GMCR’s previous estimates provided on November 11, 2009 in the Company’s 2009 fiscal fourth quarter and year-end earnings release and conference call:

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