The US-based coffee trader, roaster and distributor acquired Empire for just 60% of its market value and will take full control its first-class’ manufacturing facility
Coffee Holding has acquired Empire’s assets, including its Port Chester roastery, for 60% of market value | Photo credit: Jay
New York-based Coffee Holding has acquired private label coffee roaster and retailer Empire Coffee Company for $800,000.
In a press release, Coffee Holding said Empire ‘never fully recovered’ from the pandemic. That enabled Coffee Holding to acquire the private label coffee roaster’s assets, including its Port Chester roastery and inventory, for 60% of market value.
“The fact that we were able to complete a transaction allowing us to operate a first-class turnkey manufacturing facility where we are currently servicing some of our customers is a big win for us. We believe the purchase price represents about $0.60 on the dollar for the assets’ true value and we believe given our proven ability as an operator, we can quickly improve upon Empire’s recent performance and ramp up operations and return them to pre-Covid levels of annual revenue,” said Andrew Gordon, President and CEO, Coffee Holding.
Coffee Holding will assume Empire’s day-to-day decision-making and operations, which it said will provide production-based cost-savings ‘almost immediately’. To facilitate the purchase, Coffee Holding created a new wholly owned subsidiary named Second Empire.
Founded in 1971, Coffee Holding’s subsidiaries include premium coffee brand Harmony Bay, green coffee trader Organic Products Trading Company and roasting equipment manufacturer Sonofresco. Its retail coffee brands include Cafe Caribe, Café Supremo, S&W Premium, Premier Roasters and Via Roma, which are distributed to foodservice clients and retail locations throughout North America.
Coffee Holding achieved 3.7% year-on-year revenue growth in 2023 to reach $68.1m.
Originally founded by his great grandfather as a small batch coffee roaster, Empire was revived by Robert Richter in 1984 alongside his business partner Steve Dunefsky. The business moved to its 60,000sq ft roastery in New York in 1994, where it roasts coffee on two 500lb Jebez Burns roasters.