GREEN MOUNTAIN COFFEE ROASTERS IN NOVEMBER bought the coffee brand and wholesale operations of Toronto-based Timothy’s Coffees of the World. Green Mountain paid $157 million in cash for the company, which had been an affiliate of private equity firm Sun Capital Partners for about 18 months.
Timothy’s nearly 100 retail locations throughout Canada were not part of the acquisition. Bruegger’s Enterprises, which is also owned by Sun Capital, purchased the retail portion for an undisclosed amount.
Green Mountain will operate Timothy’s as a wholly owned Canadian subsidiary with operations integrated into the company’s specialty coffee business unit. Green Mountain had purchased Tully’s Coffee in September 2008.
Green Mountain has been doing well with its Keurig coffee dispensers and K-cups, says Chris Kampe, a managing director with investment firm Tully & Holland. Timothy’s provides Green Mountain with a Canadian brand and platform for expansion in Canada, he notes. Timothy’s also has packaging capacity and a coffee roasting facility in Ontario.