Coca-Cola acquires Glaceau for $4.1

25 May 2007

Chicago: The world's leading beverages company Coca-Cola has acquired flavoured water specialist Glaceau also known as Energy Brands Inc for $4.1 billion.

Coke is probably hoping that the vitaminwater brand of sweet, colorful water drinks with added vitamins will offer an alternative to consumers fewer of which are buying soft drinks and are opting for energy drinks and sports drinks perceived as healthier.

Tata Tea, which last year bought a 30-per cent stake in Glaceau for $677 million, said it would receive about $1.2-billion for its stake, nearly doubling its investment. Tata's purchase, announced in August, valued Glaceau at about $2 billion.

Glaceau founder and Chief Executive J. Darius Bikoff did not reveal his personal stake Glaceau but said it is 70 percent privately owned.

New York-based Glaceau's 2006 revenues are said to have been at $355 million and are forecast to reach $700 million this year.