Farmer Bros. Co. said Monday that it has acquired privately held Coffee Bean International for $22 million in stock and cash.
Portland, Ore.-based Coffee Bean International, which was founded in 1972 as one of North America's first roasters of specialty coffees, had sales of more than $30 million last year.
The acquisition is a move to expand the offerings of Farmer Bros. coffee, as well as capitalize on the booming specialty coffee industry, Rocky Laverty, chief operating officer of Farmer Bros. said.
Farmer Bros., based in Torrance, also said that it immediately plans to upgrade the company's roasting plant in Portland in a move to increase the roaster's capacity.
Farmer Bros. also added that Coffee Bean would remain in Portland and will operate as a separate company under its current leadership and management team.
Shares in Farmer Bros. closed down $1.45, or 6.3 percent, Monday to $21.45.
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