Westrock Coffee announced on Friday that it will pay $405 million to purchase a North Carolina company that is the nation’s largest coffee and tea manufacturer and supplier to restaurants and convenience stores.
The combined entity will have 1,700 employees globally and there are plans to establish corporate headquarters in Little Rock, according to Westrock CEO Scott Ford.
“This is tremendous news for our company and a validation of the work we’ve been doing for our customers and the growers who support our business,” Ford said. “It’s going to be great news for Little Rock down the road as we work with our new team members to expand our growth organically and through acquisitions.”
Westrock is purchasing S&D Coffee & Tea of Concord, N.C., which was founded in 1927 to provide fresh roasted coffee and tea to local and regional grocery stores. S&D is a subsidiary of Cott Corp. of Canada, which sold the business to Westrock.
The transaction is expected to close by March 1, Ford said. S&D has annual revenues of $600 million, according to a recent federal filing.
"The S&D team is known for its dedication, hard work and passion for quality beverages and first-class service to its customers. That commitment is evident to anyone who visits S&D or works with them, and we are confident S&D will continue to thrive under its new ownership," Tom Harrington, Cott's chief executive officer, said in the company's news release announcing the transaction.
Though corporate offices will be transitioned to Little Rock over time, Ford emphasized that there are no plans to change the core team in North Carolina. Indeed, he said the S&D executive team will play a key role in growth plans and the operations in North Carolina likely will be expanded.
“They are a much bigger company than we are and have the personnel and infrastructure in place to help build a strong company,” Ford said. “We’ll expand our roasting plant and offices in North Little Rock and have plans to expand the facilities in North Carolina.”
Westrock and S&D will continue to serve customers under their respective brand names for now. The new company will be the nation’s leading integrated coffee company, meaning it has the ability to import, export, roast, grind, process and package coffee provided by growers in more than 20 countries.
Both companies have built strong reputations providing private-label coffee to some of the nation’s leading businesses. “Together, we’ll be the biggest and the best coffee provider in the nation,” Ford said.
Westrock primarily serves retailers like Walmart, Sam’s Club and CVS outlets. Its secondary market supports the hospitality industry, providing coffee to many of the marquee hotels on the Las Vegas strip.
S&D primarily serves the restaurant industry with a secondary market of convenience stores. Its customers include McDonald’s, Wendy’s, Chick-fil-A and Circle K.
Westrock was founded in 2009 by Scott Ford and his father, Joe, along with other private investors. Today, the company has about 400 employees with offices in seven countries.
Read Saturday's Arkansas Democrat-Gazette for full details.