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Investing.com -- Farmer Bros. Co. (NASDAQ:FARM) stock surged 26.5% after the coffee roaster and distributor announced it has initiated a process to evaluate strategic alternatives aimed at maximizing shareholder value.
The company’s board has formed a strategy committee consisting of independent and disinterested directors to evaluate potential options and make recommendations to the full board. Farmer Bros. has engaged North Point Mergers and Acquisitions, Inc. as its financial advisor and Winston & Strawn LLP as legal counsel to assist with the process.
"Since the 2023 sale of our direct ship business, we have been focused on improving our financial and operational structure and are pleased with the progress we have made. We believe now is the right time to explore additional options that could allow us to more effectively maximize shareholder value," said Farmer Brothers Chairman of the Board David Pace.
The company noted it has made significant progress in transforming its operations and improving business performance over the last two years. Following the 2023 sale of its direct ship business, Farmer Bros. has concentrated on enhancing its financial and operational structure.
The board has not established a timetable for the review process, and the company cautioned that there is no guarantee the strategic review will result in any transaction or other strategic outcome. Farmer Bros. stated it does not intend to provide further updates on the process until it determines such disclosure is appropriate or necessary.
Farmer Bros. is a leading roaster, wholesaler and distributor of coffee, tea and allied products.
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