The Tata Group Acquires 30% Stake In Glaceau

MUMBAI, India and WHITESTONE, NY Aug. 23 – The Tata Group, India’s most respected business conglomerate, and Glaceau(R), the maker of vitaminwater(R), today announced that they have signed a definitive agreement whereby Tata will 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, Tata will own 30% of Glaceau. This transaction ensures that Glaceau continues to meet the explosive demand for its vitaminwater brand fueled by America’s health and wellness revolution. The Tata Group’s investment in Glaceau strengthens its U.S. presence and provides opportunities for global growth for Tata’s beverage businesses. This transaction, which was approved by Tata Sons’ and Tata Tea’s Boards of Directors at meetings held earlier today, is being made through Tata Tea GB Ltd., which includes Tetley Tea’s operations worldwide.

“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, Glaceau Founder and CEO.

“For more than 100 years, The Tata Group has built a global reputation on the fundamental premise that doing good can translate into doing good business. Glaceau exemplifies this philosophy in its vitaminwater product which was created to give people the nutrients they need every day,” said R.K. Krishna Kumar, Vice Chairman of Tata Tea and a director of Tata Sons.

The Tata Group, headquartered in Mumbai, had U.S. revenues of more than $1.97 billion, and global revenues of $22 billion in 2005-6. The Tata Group has had a U.S. 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.

Glaceau brands include vitaminwater, which is nutrient-enhanced, smartwater(R) which is electrolyte-enhanced, and fruitwater(R), which is flavor-enhanced.

“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 Glaceau.

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

This transaction is subject to customary closing conditions including governmental notifications and approvals.

Rabobank International is serving as the exclusive financial advisor for this transaction. Shearman & Sterling LLP is serving as transaction counsel to Tata and Debevoise & Plimpton LLP is serving as transaction counsel to Glaceau.

J. Darius Bikoff, Glaceau founder and CEO will be hosting a conference call August 23, 2006 at 11:00 AM EDT. Dial in information as follows:

Toll-Free Telephone Number: (877) 375-5688
International Telephone Number: (973) 582-2952
Pass code: 7772956

About The Tata Group
The Tata Group is India’s best-known industrial group with global revenues of $22 billion (equivalent to 2.9 % of India’s GDP), covering 93 major companies with business operations in seven business sectors — Engineering, Materials, Energy, Chemicals, Consumer Products, Services, and Communications and Information Systems. The Tata brand is India’s most respected brand across consumer segments with many national and internationally renowned product and service brands including Tata Indica, Tata Indigo, Indigo Marina, Tata Ace, Tata Safari, Tata Indicom, Taj Group of Hotels (Luxury, Business and Leisure), Ginger, Tata Tea, Tetley, Tata Salt, Tata Steelium, Tata Shaktee, Tata Tiscon, Tata Pipes, Titan, Tanishq, Voltas, Westside, Star India Bazaar and Landmark. By combining ethical values with business acumen, globalization with national interests and, core businesses with emerging ones, the Tata Group aims to be the largest and most respected global brand from India, while fulfilling its long-standing commitment to improving the quality of life of its stakeholders.

about glaceau
glaceau(R) was started by a guy who simply wanted better water and couldn’t find it, so he made it himself. formed in 1996, we are the creator of the enhanced water category and maker of vitaminwater(R), fruitwater(R) and smartwater(R). like where we’re from (new york), there’s no b.s. about us. in this tradition of “keeping it real,” we use only natural flavors and colors in our products (why would you do it any other way, really?). since inception, glaceau has experienced more than 200% compounded annual growth, and now more than five million bottles are sold every day to thirsty people like you. proof that when you put a better product on the market, people respond. for more information visit

About TSG Consumer Partners
Founded in 1987, TSG Consumer Partners is a leading private equity firm in the U.S. that pioneered the use of private equity in high-growth, middle market branded consumer companies. In addition to its early investment in Glaceau, TSG has invested in a number of branded consumer companies including Smart Balance Foods, PureOlogy, Mauna Loa, Medtech, Meguiar’s, Met-Rx Nutrition, and Famous Amos, among others.