Date:24/08/2006 URL: http://www.thehindu.com/2006/08/24/stories/2006082405651700.htm

Business

Tatas buy 30 p.c. in Glaceau for $ 677 m

Staff Correspondent

Investment strengthens Tatas' U.S. presence

MUMBAI: The Tata Group and Glaceau of the U.S., the maker of vitaminwater, on Wednesday signed a definitive agreement whereby Tata Sons and Tata Tea will jointly invest $677 million in Glaceau to purchase the stake previously held by TSG Consumer Partners and provide additional growth capital.

As a result of this investment, the Tatas will own 30 per cent of Glaceau. This transaction ensures that Glaceau continues to meet the demand for its vitaminwater brand fuelled by America's health and wellness revolution.

U.S. presence strengthens

The Tata Group's investment in Glaceau strengthens its U.S. presence and provides opportunities for global growth for the Tatas' beverage business.

The transaction is being made through Tata Tea GB Ltd., which includes Tetley Tea's operations worldwide.

The Chairman of the company will be initially nominated by the Tata group.

"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,'' said R. K. Krishna Kumar, Vice Chairman of Tata Tea, and a director of Tata Sons.