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ATLANTA and WHITESTONE, N.Y. -- The Coca-Cola Company said last week it has agreed to acquire Energy Brands, Inc., known as Glaceau, and its full range of fast-growing, enhanced water brands, including Vitaminwater. Coca-Cola said the acquisition, for $4.1 billion in cash, would give it a platform to grow its active lifestyle beverage business.
"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 c.e.o. of the Coca-Cola Co., in a statement. "We envision even faster growth for Glaceau as part of Coca-Cola's enhanced range of brands for North American customers and consumers."
With the Vitaminwater, Smartwater, Fruitwater and Vitaminenergy brands, Glaceau is positioned in key market categories, with a leading spot in enhanced water, and attractive brands in water and energy drinks, Coca-Cola said. These categories are expected to make up a large portion of the beverage industry's volume and gross profit growth in North America through 2010.
Glaceau will operate as a separate business unit within Coca-Cola North America (CCNA).
The company noted that Glaceau's top three executives (J. Darius Bikoff, Mike Repole, and Mike Venuti) intend to lead the business for a minimum of three years, and that other key managers will remain in the business.
The transaction, which is expected to close in the summer of 2007, is subject to customary regulatory review. The boards of both companies have approved the transaction.