Bay area roaster makes stock bid on Diedrich

Coffee Pacifica wants a 66 percent stake of the Irvine-based roasting company.
By Nancy Luna
The Orange County Register

A Berkeley-based coffee bean wholesaler made a bid Monday to buy a controlling stake of Irvine-based Diedrich Coffee.

A Diedrich spokeswoman said the 3 million stock purchase bid by Coffee Pacifica took Diedrich officials by surprise Monday. Beyond that, Diedrich officials declined to comment on the offer, which would give Coffee Pacifica a 66 percent stake in Diedrich.

Diedrich board Chairman Paul Heeschen is currently the largest shareholder. Heeschen could not be reached for comment Monday.

The stock purchase calls for Coffee Pacifica to pay four shares of its common stock for each share owned by Diedrich shareholders, according to a regulatory filing released Monday. Diedrich Coffee shares closed Monday at $4.93, up 31 cents from Friday. Coffee Pacifica shares, which are primarily owned by coffee farmers, closed at $1.72.

Coffee Pacifica officials could not be reached for comment Monday.

"By acquiring stock of Diedrich, (Coffee Pacifica) hopes to guarantee a long-term purchaser of its green-bean coffee," according to the Securities and Exchange Commission filing.

Coffee Pacifica markets and distributes premium green bean coffee grown in Papua New Guinea. Diedrich Coffee, which recently sold most of its local retail cafes to Starbucks, has been one of Coffee Pacifica's regular customers.

Coffee Pacifica posted annual revenue of $2.6 million in 2006, up from $749,660 in 2005. The company recently added Jamaican and Ethiopian coffees to its line of products.