Massive Indian beverage conglomerate Tata Tea may buy up to another 10 percent of Energy Brands, the marketer of Glaceau’s vitaminwater, smartwater, and the like.
Tata bought approximately 30 percent of the fast-growing company last month for a whopping $677 million; two of Tata’s leaders are expected to join the five-member board of Energy Brands next month.
According to an Indian newspaper, as part of the deal, Tata might add another 10 percent by buying out the interests of other venture capital firms. Tata’s initial stake came through a buyout of investors TSG Partners, which realized massive profits as a result of its staking Energy Brands owner J. Darius Bikoff to about $40 million a few years ago.
Tata Tea vice-chairman RK Krishna Kumar told ITALIC/The Financial Express/ITALIC that there was a two-year waiting period for Glaceau brands to reach India – another point that kept the deal’s focus on getting Glaceau to improve its profile domestically.