Thursday, August 24 2006 14:32 Hrs (IST) - World Time -

Mumbai: Tata Group yesterday (Aug 23, 2006) said it will buy a 30 per cent stake in US vitaminwater maker Energy Brands Inc, popularly known as Glaceau for 677 million dollars, marking one of the biggest ever acquisitions made by an Indian company.

Tatas, through its subsidiary Tata Tea GB, picked up the stake owned by TSG Consumer Partners in the unlisted Gaceau, which is 50 per cent owned by promoters and 20 per cent by venture capital funds, Tata Tea Vice Chairman and Tata Sons director R K Krishnakumar told reporters here.

About the funding for acquisition, he said Tata Tea will invest US$ 192 million and Tata Sons will bring in US$ 58 million for this.

"The acquisition is being done through Tata Tea GB. Tata Sons and Tata Tea will invest around US$ 250 million in Tata Tea GB for the acqusition. The rest will be debt raised by Tata Tea GB," he said.

"The stake buyout, to be completed under group firms Tata Tea and its promoter Tata Sons, will enable Tata Tea to strengthen its US presence," he said.

Glaceau clocked revenues to the tune of US$ 355 million in 2005.

"We expect the company will double its revenue next year...and the expectation is that the revenues will touch US$ 700 million by next year," Krishnakumar said.

Glaceau sells around five million bottles of water products a day, including vitaminwater, smartwater and fruitwater.

Rabobank International is serving as financial advisor for the transaction.