TORRANCE, Calif. – Farmer Bros. Co. (the “Company”) today (Nov. 17, 2014) announced a definitive agreement to acquire from Rae’ Launo Corporation (“RLC”) assets relating to RLC’s direct-store delivery (DSD) business that primarily serves convenience stores in the Southeast and RLC’s in-room distributor channel that primarily serves the hospitality industry.
Through the $1.5-million asset acquisition, Farmer Bros. Co. will acquire additional customers and expand its reach in the Southeastern United States. RLC’s senior management team has agreed to join Farmer Bros. Co., helping to promote a smooth customer transition.
RLC recorded $3.6 million in annual revenue in calendar 2013. The closing, which is subject to the satisfaction of certain conditions, is currently expected by the end of the calendar year 2014.
“RLC, with its well-earned reputation in the Florida and Southern Georgia region, is a great fit for Farmer Brothers, 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.
“We are excited to welcome the people who built that excellent reputation into the Farmer Brothers family.”
“Joining Farmer Brothers, 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,” said Ben Rayfield, President of Rae’ Launo Corporation.
“I’m looking forward to working with Ben and his team to further build out the Farmer Brothers presence in the Southeastern region,” said Tom Mortensen, Senior Vice President, Route Sales, who will lead the integration process. “Our first priority after the closing will be to maintain excellent customer service.”