Procter & Gamble to Purchase Brothers Coffee

Procter & Gamble (Cincinnati) has reached an agreement to purchase assets of Brothers Gourmet Coffees, Inc. (Boca Raton, FL) for $22.8 million—$21.5 million cash, plus $1.3 million of Brothers' liabilities. Brothers filed for Chapter 11 bankruptcy protection in August 1998. The agreement is expected to close about Apr. 30, 1999, subject to bankruptcy court and regulatory approvals.

The purchase includes portions of Brothers' inventory, accounts receivable, in-store equipment and other contracts. Brothers has also an additional supply agreement to roast, package and ship coffee to P&G for up to one year. Headquartered in Boca Raton, FL, Brothers' plant site in Houston, TX, was not included in the purchase.