Farmer Bros soars on sale of direct ship business

Farmer Bros Co

07/06/2023 16:25

** Shares of coffee wholesaler Farmer Bros Co  FARM.O  rise
73.3% to $3.35
    ** Stock set to post best day ever if gains hold
    ** Co announces deal to sell its direct ship business,
including its Northlake, Texas facility to food processing co
TreeHouse Foods Inc  THS.N  for about $100 mln 
    ** "Exiting the direct ship space will allow us to focus
almost exclusively on direct store delivery, which is our most
profitable and highest growth potential business"- CEO Deverl
Maserang
    ** Says following sale of Northlake facility, annual revenue
expected to be ~$350 mln with improved product margins 
    ** "Proceeds from the sale will allow us to solidify our
financial position by recapitalizing the company" - FARM
    ** Including session gains, stock has fallen 25.6% YTD

 (Reporting by Sruthi Narasimha Chari in Bengaluru)
 ((Sruthinarasimha.chari@thomsonreuters.com))