By Arun Kumar
IANS
Washington : India's Tata Tea is all set to make a cool profit of $523 million with the Coca-Cola company buying its 30 per cent stake in Vitaminwater maker Glaceau for 1.2 billion.
As part of the $4.2 billion deal with the world's largest beverage maker for acquiring 100 per cent of the capital of US-based Glaceau, also known as Energy Brands Inc, Tata Ltd (UK) have agreed to sell it their shares for 1.2 billion by the end of the year.
Tata Tea and Tata Sons had through their British subsidiaries acquired 30 per cent holding in Glaceau for $677 million in August 2006 when the company was valued at $2.2 billion. Tatas thus stand to make a profit of $523 million.
Announcing the completion of the deal in Atlanta last week, Coca-Cola said Glacéau will now operate as a separate business unit of Coca-Cola North America, giving it a strong platform from which to accelerate its growth in active lifestyle beverages.
The Coca-Cola company and Tata Tea had May 25 announced the deal for the acquisition of Glacéau, and its full range of fast-growing, enhanced water brands, including Vitaminwater.
"This acquisition fits perfectly within our focus on our North American business and our belief that, alongside our sparkling beverage leadership, an expanded active lifestyle business will greatly enhance our still beverage line-up," said Muhtar Kent, president and COO of the company.
"We're pleased to have closed the transaction, and now we are moving full speed ahead to fully leverage Glacéau's growth potential, first in the United States and then around the world."