Green Mountain buys Timothy's, lifts outlook

posted: 88 DAYS 22 HOURS AGO

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WATERBURY, Vt. -Green Mountain Coffee Roasters Inc. said Friday it bought Timothy's Coffees of the World Inc. for $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 percent and 70 percent, up from 61 percent and 66 percent.

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 percent and 60 percent, up from prior estimates of 50 percent to 55 percent.

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 $68.59 in morning trading.

2009-11-13 09:52:11