(RTTNews) - Green Mountain Coffee Roasters Inc. (GMCR: News ) Friday said it acquired Canadian coffee maker, Timothy's Coffees of the World, Inc. from an affiliate of Sun Capital Partners, Inc. for about $157 million in cash. Green Mountain anticipates the acquisition to be accretive to earnings in fiscal year 2010 and has also revised its first quarter and full year estimates to reflect the change.
The acquisition will provide Waterbury, Vermont-based Green Mountain an opening into the Canadian market along with a coffee roasting facility in Toronto, and also expects to accelerate its geographic expansion on the new Canadian Platform.
The acquisition adds Timothy's World Coffee brand and its wholesale business to the roster of Green Mountain, while the retail portion of the Timothy's brand across Canada will continue to held by Bruegger's Enterprises, Inc., with which Green Mountain has signed a five-year coffee supply agreement. Currently, Green mountain effects supplies to all of Bruegger's 290 locations in US.
Green Mountain said it would maintain the acquired business as a wholly owned Canadian subsidiary, with operations integrated into Green Mountain's special coffee business.
Commenting on the acquisition, Lawrence Blanford, President and Chief Executive Officer of Green Mountain said, "We believe that Timothy's, along with our Green Mountain Coffee brand, will contribute meaningfully to our future success in Canada and throughout North America."
"Timothy's wholesale business and brand is a landmark international acquisition for GMCR - representing the accomplishment of a key goal: to further optimize the Keurig opportunity and our family of brands across North America," Blanford added.
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