Diedrich Coffee and Praise International Set June 12, 2009 Closing Date for Sale of Gloria Jean's Coffees Domestic Franchise Ope
May 29 2009 - 5:43PM
PR Newswire (US)
IRVINE, Calif., May 29 /PRNewswire-FirstCall/ -- Diedrich Coffee,
Inc. (NASDAQ:DDRX) and Praise International North America, Inc.
have agreed upon June 12, 2009 as the closing date for the sale of
Diedrich Coffee's Gloria Jean's Coffees domestic franchise
operations. As part of its strategy to capitalize on the growth of
the wholesale specialty coffee market and its strength as a premier
roaster and distributor of the world's finest coffees, on March 27,
2009, Diedrich Coffee announced a definitive agreement with Praise
International North America, an affiliate of Gloria Jean's Coffees
International, for the sale of the Gloria Jean's Coffees domestic
franchise operations. Gloria Jean's Coffees International currently
holds the rights to the Gloria Jean's Coffees brand outside of the
United States and Puerto Rico. The sale of the Gloria Jean's
Coffees domestic franchise operations includes 102 franchise and
company-operated locations across 24 states. The purchase price is
approximately $3.1 million and includes a five-year agreement for
roasting services provided by Diedrich Coffee. The terms of the
transaction also grant Diedrich Coffee the rights to use the Gloria
Jean's Coffee brand names in perpetuity for various wholesale
business channels and the Keurig K-Cup(R) product lines. Diedrich
Coffee is one of only four roasters under license to produce K-Cups
for Keurig's increasingly popular single-cup brewing system. About
Diedrich Coffee With headquarters in Irvine, California, Diedrich
Coffee specializes in sourcing, roasting and selling the world's
highest quality coffees. The company's three brands are Diedrich
Coffee, Gloria Jean's Coffees and Coffee People. Diedrich Coffee
sells its coffees through office coffee service distributors,
restaurants and specialty retailers, and via the company's Web
stores. For more information about Diedrich Coffee, call
800-354-5282 or go to: http://www.diedrich.com/,
http://www.gloriajeans.com/, http://www.coffeepeople.com/ or
http://www.coffeeteastore.com/. Forward-Looking Statements
Statements in this news release that relate to future plans,
financial results or projections, events or performance are
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended, and fall under the
safe harbor. Actual results and financial position could differ
materially from those anticipated in the forward-looking statements
as a result of a number of factors, including, but not limited to,
the financial and operating performance of the Diedrich Coffee's
wholesale operations, the company's ability to maintain
profitability over time, the successful execution of the company's
growth strategies, franchisee's adherence to the company's
practices, policies and procedures, the impact of competition, the
availability of working capital, and other risks and uncertainties
described in detail under "Risk Factors and Trends Affecting
Diedrich Coffee and its Business" in the company's annual report on
Form 10-K for the fiscal year ended June 25, 2008 and other reports
filed with the Securities and Exchange Commission. Except where
required by law, the company does not undertake an obligation to
revise or update any forward-looking statements, whether as a
result of new information, future events or changed circumstances.
Trademarks are the property of their respective owners. Diedrich
Coffee Investor Relations: Scott Liolios or Cody Slach Liolios
Group, Inc. Tel 949-574-3860 DATASOURCE: Diedrich Coffee, Inc.
CONTACT: Investors, Scott Liolios or Cody Slach, both of Liolios
Group, Inc., +1-949-574-3860, , for Diedrich Coffee, Inc. Web Site:
http://www.diedrich.com/ http://www.gloriajeans.com/
http://www.coffeepeople.com/ http://www.coffeeteastore.com/
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