Farmer Bros. Co. to acquire Rae' Launo's DSD and in-room distribution business
Acquisition increases Farmer Bros.’ presence in Southeastern U.S., hospitality sector
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.