Tully's Coffee Inc., a coffee chain which has close relations
with specialty coffee retailer
Green Mountain Coffee Roasters Inc.
), has been sold to Global Baristas LLC, an investment group led
by the actor Patrick Dempsey. However, Global Baristas will
continue to operate the stores under Tully's brand name and
retain all the employees of the coffee chain.
Dempsey acquired Tully's for a sum of $9.2 million beating the
combined offer of $10.6 million by the giant coffee chain,
), and the Philippines-based AgriNurture.
Green Mountain already owns the wholesale side of Tully's
brand which includes coffee in bags and single-serve packs sold
in supermarkets and other stores. Tully sold its brand, wholesale
and supply chain businesses to Green Mountain Coffee Roasters of
Vermont for $40.3 million in cash in 2008.
The above-mentioned ownership by GMCR was an obstacle to
Starbucks and AgriNurture's joint decision to acquire Tully's
Coffee as this would affect several company contracts.
Tully's cash position eroded and it filed for bankruptcy last
October. Tully's reported to the court that it had $5.9 million
in assets and $3.7 million in liabilities, much of which was owed
Green Mountain, however, said that the sale of Tully's Coffee
and its assets will not have any significant impact on its
operations of the wholesale business.
Green Mountain, which carries a Zacks Rank #1 (Strong Buy), is
a leading specialty coffee chain and the owner of Keurig
single-serve coffee brewers. It aims at popularizing the
single-cup brewing system in America and has therefore, entered
into several strategic distribution agreements to rope in popular
Dunkin' Brands Group Inc.
), Starbucks Corporation and
) into its portion-pack system.
DUNKIN BRANDS (DNKN): Free Stock Analysis
GREEN MTN COFFE (GMCR): Free Stock Analysis
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