- The per-share value represents a 15% discount to the stock’s closing price on Tuesday.
- The transaction is expected to close by June 30, 2026, after which Farmer Brothers will go private.
- According to Koyfin data, Farmer Brothers Coffee has 21.73 million outstanding shares, implying a total consideration of roughly $28 million.
Shares of Farmer Brothers Coffee Co. (FARM) plummeted nearly 18% to their lowest since March 1978, after the company announced an agreement to be acquired by Royal Cup Coffee & Tea in an all-cash deal valued at $1.29 per share.
According to Koyfin data, Farmer Brothers Coffee has 21.73 million outstanding shares, implying a total consideration of roughly $28 million. The deal represents around 15% discount to FARM stock’s closing price of $1.51 on Tuesday.
Royal Cup To Take Farmer Brothers Private
Under the agreement, Royal Cup will purchase all outstanding shares of Farmer Brothers. The transaction is expected to close in the company’s fiscal fourth quarter ending June 30, 2026. Following the completion of the acquisition, Farmer Brothers’ shares will no longer trade on the NASDAQ Global Select Market.
“Bringing together more than 250 years of coffee expertise, it allows us to enhance our manufacturing and production capabilities, expand our already industry-leading nationwide distribution network, create even greater economies of scale and ultimately better serve our customers,” said Farmer Brothers President and CEO John Moore.
Founded in 1912, Farmer Brothers is a Texas-based national roaster, wholesaler, and distributor of coffee, tea, and related products. Royal Cup Coffee & Tea is an Alabama-based company that has been manufacturing and distributing coffee and tea since 1896.
How Did Stocktwits Users React?
Retail sentiment for FARM stock on Stocktwits remained in the ‘neutral’ zone over the past 24 hours.
One user said the undervalued acquisition is better than bankruptcy.
The stock has been under selling pressure, declining 14% in 2026 and more than 55% over the past year.
Read also: Why Did CDXS Stock Jump 7% Today?
For updates and corrections, email newsroom[at]stocktwits[dot]com.