Green Mountain Coffee Roasters Aquires Tully’s Brand and Wholesale Business
Green Mountain Coffee Roasters, Inc. has announced that it has completed the acquisition of the Tully’s Coffee® brand and wholesale coffee business from Tully’s Coffee Corporation for the purchase price of $40.3 million. Initially announced on September 15, 2008, the transaction was completed after receiving the required shareholders’ vote and satisfaction of the required closing conditions, as set forth in the Asset Purchase Agreement previously filed with the Securities and Exchange Commission. The Company financed this purchase through its existing $225 million senior revolving credit facility.
Tully’s retail locations will continue to operate under license and supply agreements with GMCR. The retail and international business will remain an independent company, operating under the name of TC Global, Inc., owned by its existing shareholders, and managed by its existing management team. As previously disclosed, the Company anticipates that this transaction will be neutral to slightly accretive to its earnings per share for the first twelve months of its ownership, and accretive thereafter.
What does this mean for single serve coffee? Everything. We love Tully's coffees and now moving forward we'll be assured they'll be around forever. A big thanks to Green Mountain for acquiring Tully's and continuing to expand into new and exciting areas in single serve coffee.
At Green Mountain Coffee
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Posted by Jay Brewer at March 31, 2009 7:33 AM
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