Green Mountain Coffee Roasters, the Waterbury, Vt.-based specialty coffee maker with a family of brands including Newman's Own Organics coffee, has acquired Timothy’s Coffees of the World, in a deal valued at $157 million. Toronto-based Timothy’s was sold by an affiliate of private equity firm Sun Capital Partners. The deal includes a coffee-roasting plant in Canada as well as Timothy’s wholesale business, but does not include Timothy’s 139 retail stores, which were acquired by Bruegger’s Enterprises in a separate deal.
Green Mountain specializes in organic, fair trade and specialty coffee. The Keurig business unit of Green Mountain manufacturers gourmet single-cup brewing systems. Timothy’s is a premium coffee company that makes packaged coffee, tea and other beverages, including Keurig portion packs under the Timothy’s World Coffee, Emeril’s and Kahlua Original K-Cup brands.
“Timothy’s is a great addition to GMCR’s family of brands,” said Lawrence J. Blanford, president and chief executive officer of Green Mountain, in a press release. “We have been collaborating together since they became a Keurig licensee and know the company is a great strategic and cultural fit.” He said the deal expands the company’s sales in Canada.
Green Mountain's acquisition of Timothy's is the second deal this month in the fast-growing single-cup coffee segment. Peet’s Coffee and Tea Inc. acquired Diedrich Coffee for about $213 million to add individual prepackaged coffee sales to its wholesale coffee bean business.