New York: Soft drink giant Coca-Cola today announced it will acquire US energy drink maker Glaceau, in which India's Tata Group has 30 per cent stake, for $4.1 billion in cash.
The Atlanta-based world's largest aerated drinks firm said in a statement it has reached an agreement with Energy Brands, Inc, also known as Glaceau, for the acquisition.
Tata Tea had acquired a 30 per cent stake in Glaceau, which has an annual turnover of $355 million, in August last year for $677 million.
At the time of the transaction, Tata Group had projected Glaceau's annual revenue to nearly double to $700 million in 2007.
Based on the price of Tatas' acquisition, New York-based Glaceau could be valued at close to $2.25 billion.
The acquisition price of $4.1 billion represents a significant premium to the price paid by Tata Group.
"The Board of both companies have approved the transaction," the statement said, adding the transaction is expected to close in the summer of this year.
"Glaceau and its brands provide us with highly attractive longer-term international opportunities," Coca-Cola President and Chief Operating Office Muhtar Kent said in the statement.
The company said the takeover would expand its portfolio to include vitaminwater, smartwater, fruitwater and vitamin energy brands.
Meanwhile, in India, Tata Tea shares jumped 4 per cent or Rs 34.95 on the bourses today to Rs 913.65 after hitting a lifetime high of Rs 941.25 earlier in the day.
Glaceau was first reported to be on Coke's takeover radar earlier last month.
The reports had sent shares of Tata Tea soaring by close to 15 per cent on the Indian bourses on April 25. The stock gained over four per cent again on May 22, after the reports about the pre-merger filing made by Coke in the US.
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