Coffee distributor Peet’s Coffee & Tea Inc. has agreed to buy Stumptown Coffee Roasters from TSG Consumer Partners LLC. Financial terms were not disclosed.
Stumptown, founded in 1999 and based in Portland, Oregon, operates 10 cafes across Seattle, New York and Los Angeles. TSG acquired the chain in 2011.
“We’re excited about the opportunities this will provide for us as we continue to grow,” Stumptown said in a blog posted on the company’s website. Stumptown will continue to operate independently after the deal closes. Peet’s operates more than 200 stores.
Peet’s says the acquisition of Stumptown is part of the company’s broader growth strategy. Investment firm Joh. A. Benckiser purchased Peet’s in 2012 for $1 billion and in 2014, Peet’s bought Mighty Leafy Tea.
Peet’s is not the only coffee company that has been looking for acquisitions. Earlier in 2015, Royal Cup Inc. made a deal for Teasy Teas LLC. Starbucks Corp. (Nasdaq: SBUX) won Mergers & Acquisitions’ 2013 M&A Mid-Market Award for Deal of the Year for its $620 million purchase of Teavana.
In 2014, TSG acquired a minority stake in Pabst Brewing.