Tatas strike $677 million deal for Glaceau
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Tatas strike $677 million deal for Glaceau

By agencies   |   Thursday, 24 August 2006, 07:00 Hrs
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KOLKATA: Tata Tea is set to acquire stake in the unlisted American firm Energy Brands Inc, popularly known as Glaceau.

Announcing the deal, Tata Tea Vice Chairman and Tata Sons director R K Krishnakumar said that a 30 percent stake buyout, to be completed under group firms Tata Tea and its promoter Tata Sons, will be finalized at $677 million, making it one of the biggest deals involving an Indian company. “Glaceau is part of a very exciting, strong business and provides Tata Tea an opportunity to be present in the unfolding crossover space in the beverages market. We believe that the whole Glaceau product line of vitaminwater, smartwater and fruitwater will help us expand our beverage business in North America,’’ he added.

Glaceau has experienced more than 200 percent compounded annual growth since its inception and now more than five million bottles are sold every day. Coming after its acquisition of the herbal tea company Good Earth and Eight O Clock Coffee Company by Tata Groups, the investment marks Tata Tea’s entry into health drinks, which is the next step forward the company has been looking to take in its beverages business.

The investment is being recorded as the highest deal above any that India Inc. has made abroad this far. Dr Reddy’s buy of Betapharm for $572 million and Tata Steel’s acquisition of Natsteel for $ 486 million have been among the largest non-oil overseas investments.

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