Green Mountain buy Frontier Organic Coffee.Green Mountain Coffee Inc. said it acquired Frontier Natural Products Co-op's Frontier Organic Coffee brand, its trade information, and various other assets other assetsAssets of relatively small value. For financial reporting purposes, firms frequently combine small assets into a single category rather than listing each item separately. related to its coffee business for about $2.7 million in cash, including estimated transaction costs Transaction Costs Costs incurred when buying or selling securities. These include brokers' commissions and spreads (the difference between the price the dealer paid for a security and the price they can sell it). . Green Mountain said it financed the acquisition through its existing line of bank debt. Frontier Organic Coffee, one of the largest importers and roasters dedicated to 100% certified See certification. organic coffee in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , recorded sales last year of more than $3.5 million, it said. "The Frontier Organic Coffee acquisition is designed to be immediately accretive to earnings, although its impact is not expected to be material due to the size of the transaction," said Robert Britt britt n. Variant of brit. Noun 1. britt - the young of a herring or sprat or similar fish brit young fish - a fish that is young 2. , cfo of Green Mountain. "While we expect the effect on this fiscal year's financial results to be essentially neutral, going forward it should enhance Green Mountain Coffee's efforts to meet our goals for growing both our top line and, particularly in view of our ability to finance this deal at current variable interest rates of approximately 5%, our bottom line." |
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