Irvine, Calif., May 29 - Diedrich Coffee, Inc. and Praise International North America, Inc. have agreed upon June 12, 2009 as the closing date for the sale of Diedrich Coffee's Gloria Jean's Coffees domestic franchise operations.
As part of its strategy to capitalize on the growth of the wholesale specialty coffee market and its strength as a premier roaster and distributor of the world's finest coffees, on March 27, 2009, Diedrich Coffee announced a definitive agreement with Praise International North America, an affiliate of Gloria Jean's Coffees International, for the sale of the Gloria Jean's Coffees domestic franchise operations. Gloria Jean's Coffees International currently holds the rights to the Gloria Jean's Coffees brand outside of the United States and Puerto Rico.
The sale of the Gloria Jean's Coffees domestic franchise operations includes 102 franchise and company-operated locations across 24 states. The purchase price is approximately $3.1 million and includes a five-year agreement for roasting services provided by Diedrich Coffee. The terms of the transaction also grant Diedrich Coffee the rights to use the Gloria Jean's Coffee brand names in perpetuity for various wholesale business channels and the Keurig K-Cup(R) product lines. Diedrich Coffee is one of only four roasters under license to produce K-Cups for Keurig's increasingly popular single-cup brewing system.