TSG-Backed Coffee Chain Dutch Bros Files for IPO Showing Profit

(Bloomberg) -- Dutch Bros Inc. filed for an initial public offering, disclosing revenue and income gains and plans for its shares to trade under the symbol BROS.

The company, based in the Grants Pass in southern Oregon where it was founded in 1992, listed the size of the offering as $100 million in its filing Friday with the U.S. Securities and Exchange Commission. That’s a placeholder that will change when it sets terms for the share sale.

Dutch Bros, backed by private equity firm TSG Consumer Partners, was seeking to be valued in an IPO at about $3 billion, Bloomberg News reported in May.

The company was started by brothers Dane and Travis Boersma. It now operates in 11 western states, with about half of its more than 470 coffee shops in Oregon and California, according to the filing.

For the first six months of the year, Dutch Bros said it had net income of $5.8 million on revenue of $228 million, compared with $5.3 million on revenue of $151 million for the same period in 2020.

Dutch Bros sold a minority stake to TSG in 2018, according to a statement at the time. TSG, along with Travis Boersma and others, is listed in the filing as one of the company’s largest shareholders, although the size of its stake isn’t detailed in the filing. 

Dane Boersma was diagnosed with ALS in 2004 and died five years later, according to the filing. His brother, now executive chairman, said in a letter to potential investors that the loss inspired his personal mission statement: “I, Travis Boersma, see, hear, know and feel that the purpose of my life is to enjoy the journey, to maximize the moment, to be a loving, passionate, inspirational leader that defies the odds, to be a force for God and a force for good.”

The offering is being led by Bank of America Corp., JPMorgan Chase & Co. and Jefferies Financial Group Inc. The company plans for its shares to trade on the New York Stock Exchange.

©2021 Bloomberg L.P.