Green Mountain Coffee Roasters, Inc. (GMCR) said it has completed the acquisition of the Tully's Coffee brand and wholesale coffee business from Tully's Coffee Corp. for the purchase price of $40.3 million.
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 the purchase through its existing $225 million senior revolving credit facility.
As previously disclosed, the company anticipates the transaction to be neutral to slightly accretive to its earnings per share for the first twelve months of its ownership, and accretive thereafter.
Tully's retail locations will continue to operate under license and supply agreements with Green Mountain Coffee Roasters. 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.
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