Tata Group and Glacéau®, the maker of vitaminwater, have signed a definitive agreement whereby Tata Sons and Tata Tea will jointly invest $677 million in Glacéau® to purchase the stake previously held by TSG Consumer Partners and provide additional growth capital. As a result of this investment, Tata will own 30 per cent of Glacéau®. This transaction ensures that Glacéau® continues to meet the explosive demand for its vitaminwater® brand fueled by America's health and wellness revolution. Tata Group will initially nominate the chairman of the company.
Tata Group's investment in Glacéau® strengthens its US presence and provides opportunities for the global growth of Tata's beverage businesses. This transaction, which was approved by Tata Sons' and Tata Tea's boards of directors at meetings held earlier, is being made through Tata Tea GB, which includes Tetley Tea's operations worldwide.
"Glacéau® 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 Glacéau® product line of 'vitaminwater', 'smartwater' and 'fruitwater' will help us expand our beverage business in North America," said R K Krishna Kumar, vice-chairman, Tata Tea and, director, Tata Sons.
"The really good news for our employees, distributors and retailers who are responsible for our success is that this partnership ensures our continued independence. We appreciate and value TSG Consumer Partners' support for the company and its management," said Mike Repole, President of Glacéau®.
"I want to thank all the people who have made vitaminwater® so popular and told their friends about it. Now, millions more across the country looking for something healthier to drink can finally go out and get their own bottle of vitaminwater®," said J Darius Bikoff, Glacéau® founder and CEO.
Tata Group had US revenues of more than $1.97 billion, and global revenues of $22 billion in 2005-6. Tata Group has had a US presence since 1945 and its growing North American beverage business, which includes Tetley Tea, Good Earth Teas and Eight O'Clock Coffee, is a key part of its global strategy.
Glacéau® brands include vitaminwater®, which is nutrient-enhanced, smartwater® which is electrolyte-enhanced, and fruitwater®, which is flavour-enhanced.
About TSG Consumer Partners