Coca-Cola agrees to acquire Glaceau
May 25, 2007
by FoodBusinessNews.net Staff
ATLANTA — The Coca-Cola Co. has reached an agreement to acquire Energy Brands, Inc., which is more commonly known as Glaceau, and its water brands for $4.1 billion in cash.
"Glaceau has built a great business with high-quality growth, as well as a strong pipeline of innovative products and brands," said Neville Isdell, chairman and chief executive officer of The Coca-Cola Co. "We envision even faster growth for Glaceau as part of Coca-Cola’s enhanced range of brands for North American customers and consumers."
Coca-Cola believes the acquisition will expand its ability to meet consumers’ needs in the sparkling and still beverages segment. After the acquisition is complete, Glaceau will exist as a separate business unit in Coca-Cola North America, and Glaceau’s top three executives intend to lead the business for at least three years.
Glaceau produces vitaminwater, smartwater, fruitwater and vitaminenergy brands.
"Glaceau and its brands also provide us with highly attractive longer-term international opportunities," said Muhtar Kent, president and chief operating officer of The Coca-Cola Co. "We look forward to discussing with Glaceau’s distributors and our bottling partners the best operating model for Glaceau’s routes-to-market."
The transaction is expected to close this summer.