STATEN ISLAND, NY / ACCESSWIRE / June 24, 2016 / Coffee Holding Co., Inc. (NASDAQ: JVA) ("Coffee Holding" or the "Company") announced today that it has entered into an Agreement for Purchase and Sale of Assets (the "Agreement") with Coffee Kinetics LLC, a Washington limited liability company, doing business as Sonofresco ("Sonofresco") for the purchase of substantially all of the assets of Sonofresco. Founded in 1999, Sonofresco is a manufacturer of commercial table top coffee roasters and a wholesale supplier of green coffee beans. Sonofresco's customers include retail coffee and home roasting businesses and Sonofresco oversees importers in the Asian, Australian and New Zealand markets. Revenues generated by Sonofresco are split almost equally between sales of roasting machines and sales of unroasted green coffee beans. Jerry Whitfield, the head of Sonofresco, will continue to serve as an advisor to our Sonofresco business. The closing of the transaction is subject to customary closing conditions and is expected to close on or about June 30, 2016.
"This is a very exciting transaction for us," said Andrew Gordon, President and CEO of Coffee Holding. "Sonofresco expands our already extensive reach in sales of high end specialty gourmet Arabica coffees by giving us access to Sonofresco's significant customer base, which will more than double the number of our green coffee customers. In addition, through the synergies of this acquisition, we will be able to offer Sonofresco customers our extensive list of over 90+ specialty Arabica beans which were not available to them before. We intend to expand Sonofresco's roasting machine sales both domestically and in the overseas market using our highly scalable platform with our established relationships, market reputation and presence and our overall financial capabilities. We intend to vertically integrate Sonofresco's current business model by offering products complimentary to their table top roasters, such as grinders and espresso machines, in order to give customers a more complete turn-key roasting operation. We expect that this deal will be accretive to both our bottom and top line numbers," continued Andrew Gordon, President and CEO of Coffee Holding.
About Coffee Holding
Coffee Holding Co., Inc. is a leading integrated wholesale coffee roaster and dealer in the United States and one of the few coffee companies that offers a broad array of coffee products across the entire spectrum of consumer tastes, preferences and price points. Coffee Holding has been a family-operated business for three generations and has remained profitable through varying cycles in the coffee industry and the economy. The Company's private label and branded coffee products are sold throughout the United States, Canada and abroad to supermarkets, wholesalers, and individually owned and multi-unit retail customers.
Forward Looking Statements
Any statements that are not historical facts contained in this release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including the closing of the acquisition, the expected synergies and operating results from the Sonofresco acquisition and the Company's outlook on future operations. Forward-looking statements include statements with respect to our beliefs, plans, objectives, goals, expectations, anticipations, assumptions, estimates, intentions, and future performance, and involve known and unknown risks, uncertainties and other factors, which may be beyond our control, and which may cause our actual results, performance or achievements to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. All statements other than statements of historical fact are statements that could be forward-looking statements. We have based these forward-looking statements upon information available to management as of the date of this release and management's expectations and projections about certain future events. It is possible that the assumptions made by management for purposes of such statements may not materialize. Such statements may involve risks and uncertainties, including but not limited to those relating to product demand, pricing, market acceptance, hedging activities, the effect of economic conditions, intellectual property rights, the outcome of competitive products, risks in product development, the results of financing efforts, the ability to complete transactions, and other factors discussed from time to time in the Company's Securities and Exchange Commission filings. The Company undertakes no obligation to update or revise any forward-looking statement for events or circumstances after the date on which such statement is made.
Coffee Holding Co., Inc.
President & CEO
SOURCE: Coffee Holding Co., Inc.