Torrance, Calif.-based Farmer Bros. Co. announced a definitive agreement to acquire from Tampa, Fla.-based Rae' Launo Corp. (RLC) assets relating to RLC's direct-store delivery (DSD) business that primarily serves convenience stores in the Southeast and its in-room distributor channel that primarily serves the hospitality industry.
Through the $1.5-million asset acquisition, Farmer Bros. will acquire additional customers and expand its reach in the Southeastern United States. RLC's senior management team has agreed to join Farmer Bros. in order to promote a smooth customer transition. RLC recorded $3.6 million in annual revenue in 2013. The closing, which is subject to the satisfaction of certain conditions, currently is expected by the end of 2014.
"RLC, with its well-earned reputation in the Florida and southern Georgia regions, is a great fit for Farmer Bros., allowing us to address gaps in our distribution network, broaden our exposure to the hospitality in-room business, and improve customer penetration in the Southeast," said Michael Keown, president and chief executive officer of Farmer Bros. Co., in a statement. "We are excited to welcome the people who built that excellent reputation into the Farmer Bros. family."
Ben Rayfield, president of RLC, added in a statement: "Joining Farmer Bros., with its strong DSD network and national market leadership, is a great opportunity for our DSD customers and hospitality distributors. It will provide us an even greater advantage to reach new customers and expand our product offerings to existing customers."
With respect to the closing, Tom Mortensen, senior vice president of route sales for RLC, added in a statement: "I'm looking forward to working with Ben and his team to further build out the Farmer Bros. presence in the Southeastern region. Our first priority after the closing will be to maintain excellent customer service." Mortensen will lead the integration process for the two companies.