SpongeG
Nov 20, 2009, 12:20 AM
no more business thread?
Green Mountain buys Timothy's
VANCOUVER – U.S. coffee company Green Mountain Coffee Roasters Inc. said Friday it bought Canada's Timothy's Coffees of the World Inc. for US$157 million and lifted its profit outlook for the first quarter and fiscal 2010.
The purchase includes the Timothy's World Coffee brand and wholesale business but does not include retail operations.
Green Mountain said the acquisition of the Toronto specialty coffee company from Sun Capital Partners Inc. will boost its presence in Canada and North American and lift earnings per share in fiscal year 2010.
For the first quarter, Green Mountain predicts earnings between 12 cents per share and 16 cents per share, up from prior estimates of 11 cents to 15 cents per share.
Revenue will rise between 65 per cent and 70 per cent, up from 61 per cent and 66 per cent.
Based on year-ago sales of $197 million, that implies revenue between $325.1 million and $334.9 million.
Analysts polled by Thomson Reuters expect earnings of 15 cents per share and $322.4 million.
For fiscal 2010, the company now expects earnings per share in the range of $1.85 to $1.95, up from prior estimates of $1.75 to $1.85 per share. That includes 18 cents per share for expenses for the acquisition.
Revenue will rise between 55 per cent and 60 per cent, up from prior estimates of 50 per cent to 55 per cent.
Based on year-ago revenue of $803.1 million, that implies revenue between $1.24 billion and $1.28 billion.
Analysts predict $1.82 in earnings and $1.23 billion.
Green Mountain shares rose 24 cents to US$68.59 in Friday trading.
http://www.thestar.com/business/article/725499--green-mountain-buys-timothy-s
Green Mountain buys Timothy's
VANCOUVER – U.S. coffee company Green Mountain Coffee Roasters Inc. said Friday it bought Canada's Timothy's Coffees of the World Inc. for US$157 million and lifted its profit outlook for the first quarter and fiscal 2010.
The purchase includes the Timothy's World Coffee brand and wholesale business but does not include retail operations.
Green Mountain said the acquisition of the Toronto specialty coffee company from Sun Capital Partners Inc. will boost its presence in Canada and North American and lift earnings per share in fiscal year 2010.
For the first quarter, Green Mountain predicts earnings between 12 cents per share and 16 cents per share, up from prior estimates of 11 cents to 15 cents per share.
Revenue will rise between 65 per cent and 70 per cent, up from 61 per cent and 66 per cent.
Based on year-ago sales of $197 million, that implies revenue between $325.1 million and $334.9 million.
Analysts polled by Thomson Reuters expect earnings of 15 cents per share and $322.4 million.
For fiscal 2010, the company now expects earnings per share in the range of $1.85 to $1.95, up from prior estimates of $1.75 to $1.85 per share. That includes 18 cents per share for expenses for the acquisition.
Revenue will rise between 55 per cent and 60 per cent, up from prior estimates of 50 per cent to 55 per cent.
Based on year-ago revenue of $803.1 million, that implies revenue between $1.24 billion and $1.28 billion.
Analysts predict $1.82 in earnings and $1.23 billion.
Green Mountain shares rose 24 cents to US$68.59 in Friday trading.
http://www.thestar.com/business/article/725499--green-mountain-buys-timothy-s