January 12, 2004 09:09 AM US Eastern
Timezone
Farmer Bros. ESOP Completes Purchase of
124,939 Shares
TORRANCE, Calif.--(BUSINESS
WIRE)--Jan. 12, 2004--Farmer Bros. Co. (Nasdaq:FARM) said its Employee
Stock Ownership Plan has completed its purchase of 124,939 shares of the
Company's stock, bringing the ESOP's holdings to 300,000 shares or 18.7%
of the Company's shares outstanding.
"Employees now have a significant and independent say in the future
of their Company," said Roy E. Farmer, chief executive officer. "We have
achieved the 300,000-share goal we set in 2000 when we created the ESOP.
This provides our employees with a clear and tangible interest in the
long-term success of Farmer Brothers that parallels the interests of our
many loyal, long-term shareholders. All shareholders should applaud this
action."
There have been approximately 25,500 shares allocated through the
ESOP to more than 1,100 employees since its inception in 2000. The
independent trustee for the ESOP will vote the entire 300,000 shares
using "pass through" voting. Employees will vote their allocated shares
and the bank trustee will vote the shares not yet allocated to employees
in the same manner and proportion as those voted by the employees.
The Company initially acquired the 124,939 shares for the ESOP for
approximately $250 per share as part of the December 24, 2003 purchase
of 443,844 shares from the Crowe family and trusts for $110.96 million.
The ESOP acquired these shares with a $31.2-million loan from the
Company. To repay this loan, the ESOP will use future dividends and
Company contributions to the plan.
Farmer Bros. Co. is an institutional coffee roaster that sells a
variety of coffee and allied products to the food service industry. The
company's signature trucks and vans bearing the "Consistently Good" logo
are seen throughout Farmer Brothers' 28-state service area. Farmer
Brothers has paid a dividend for 50 consecutive years, increased the
dividend in each of the last seven consecutive years, and its stock
price has grown from $18 in 1980 to over $300 a share today. The
company's common stock is traded on the NASDAQ National Market System
under the symbol "FARM." |
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