Concord-based S&D Coffee Inc., perhaps one of the most prominent companies in Cabarrus County, is being bought by Cott Corp., a publicly traded company with headquarters in Canada and Florida.
When the $355 million deal closes, the company will continue to operate under the S&D Coffee & Tea name as a subsidiary of Cott, according to a statement Thursday.
S&D is one of the country’s largest coffee roasters for the food-service industry, and supplies coffee and tea products to restaurant chains like McDonald’s, Krispy Kreme and Bojangles’.
Ron Hinson, who has been with the local coffee maker for nearly four decades, will remain president and CEO of S&D after the deal’s close. The management team will also maintain their respective responsibilities.
“In order to take the next step in our journey we wanted to find the right partner to support our future growth. In sharing our values and desire to further expand our category leadership in coffee, tea and liquid extracts, we found Cott to be the ideal partner for our business,” Hinson said.
The acquisition of S&D will enable Cott to become a “leading player in the coffee and tea categories” because of the company’s success in supplying the restaurant and convenience retail segments, Cott’s CEO Jerry Fowden said.
S&D was started in Charlotte in 1927 by Buck Davis and Lawrence Switzer, two local businessmen. They roasted coffee and added chicory, a popular flavoring at the time, and supplied mom-and-pop stores in the area.
S&D has two production facilities and one fulfillment center in Cabarrus County, and it has warehouse and distribution centers in 38 states. The company employs 732 employees at its Concord manufacturing and administrative facilities, a spokeswoman said.
In a 2012 Observer interview, CEO Hinson said the company’s goal is “to be a billion-dollar company in the next few years.”