Starbucks buys Black Coffee and its roasters to make its drinks more expensive

Starbucks Corp. (SBUX) is buying coffee and roasters from two of the world’s biggest roasters, the United States and the United Kingdom, as it seeks to bolster its espresso business and expand its coffee and tea consumption across the globe.

The coffee and roasted beverages maker said Monday that it had entered into an agreement to acquire Black Coffee Roasters Inc. (BCR).

The deal will allow Starbucks to expand its roasting capabilities to other regions and markets.

The acquisition is expected to close in the fourth quarter. 

Starbucks said it is not disclosing the terms of the transaction. 

In a statement, Starbucks CEO Howard Schultz said: “We are thrilled to be entering into this strategic transaction with a partner that is bringing more than 30 years of experience and expertise to our coffee business.” 

Starbuck’s coffee business has grown at a brisk clip since the company acquired the U.K.’s Roastery and Bar, a chain of cafes that was founded in 1963 by the late Sir Winston Churchill.

In recent years, the roasting giant has been aggressively expanding its portfolio of coffee beverages. 

A Starbucks spokesperson said in a statement that it is also exploring additional acquisitions, adding that the deal is expected close by the end of the third quarter.