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Initially announced on September 15, 2008, the transaction was completed after receiving the required shareholders’ vote and satisfaction of the required closing conditions, as set forth in the Asset Purchase Agreement previously filed with the Securities and Exchange Commission. The Company financed this purchase through its existing $225 million senior revolving credit facility.
“This acquisition hits at the intersection of our goals--to bring an outstanding specialty coffee brand into our family of brands and to expand GMCR’s West Coast presence,” says Larry Blanford, president and CEO of GMCR. “The acquisition strengthens our leadership in specialty coffee and will support our plans to establish our proprietary Keurig Single-Cup Brewing system as the preferred way to enjoy coffee throughout North America.”
Tully’s retail locations will continue to operate under license and supply agreements with GMCR. The retail and international business will remain an independent company, operating under the name of TC Global, Inc., owned by its existing shareholders, and managed by its existing management team.
As previously disclosed, the company anticipates that this transaction will be neutral to slightly accretive to its earnings per share for the first twelve months of its ownership, and accretive thereafter.