Marian Zboraj05.25.07
The Coca-Cola Company, Atlanta, GA, has reached an agreement to acquire Energy Brands, Inc., Whitestone, NY, known as glaceau, and its full range of fast-growing, enhanced water brands, including vitaminwater. The acquisition, for $4.1 billion in cash, provides The Coca-Cola Company with a strong platform to grow its active lifestyle beverages.
The transaction is expected to be accretive to The Coca-Cola Company's earnings per share in the first full year following completion of the acquisition. "We welcome vitaminwater, the icon of active lifestyles, to Coca-Cola, the ultimate and enduring icon of refreshment," said Neville Isdell, chairman and CEO of The Coca-Cola Company. "Glaceau has built a great business with high-quality growth, as well as a strong pipeline of innovative products and brands. We envision even faster growth for glaceau as part of Coca-Cola's enhanced range of brands for North American customers and consumers. We will manage this opportunity in a way that delivers attractive returns for our shareowners and also appropriately benefits our system," Mr. Isdell concluded.
Coca-Cola said that the acquisition of glaceau will expand the company's ability to meet consumers' needs further across the entire spectrum of sparkling and still beverages. With its vitaminwater, smartwater, fruitwater and vitaminenergy brands, glaceau is uniquely positioned in key market categories, with a leading position in enhanced water and attractive brands in water and energy drinks. 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). This structure will allow glaceau to continue to win in the marketplace by maximizing its focus, speed, sales and execution capabilities, while leveraging the scale of CCNA's resources in supply chain, marketing and consumer insights, large customer management and foodservice. Coca-Cola 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.
The transaction is expected to be accretive to The Coca-Cola Company's earnings per share in the first full year following completion of the acquisition. "We welcome vitaminwater, the icon of active lifestyles, to Coca-Cola, the ultimate and enduring icon of refreshment," said Neville Isdell, chairman and CEO of The Coca-Cola Company. "Glaceau has built a great business with high-quality growth, as well as a strong pipeline of innovative products and brands. We envision even faster growth for glaceau as part of Coca-Cola's enhanced range of brands for North American customers and consumers. We will manage this opportunity in a way that delivers attractive returns for our shareowners and also appropriately benefits our system," Mr. Isdell concluded.
Coca-Cola said that the acquisition of glaceau will expand the company's ability to meet consumers' needs further across the entire spectrum of sparkling and still beverages. With its vitaminwater, smartwater, fruitwater and vitaminenergy brands, glaceau is uniquely positioned in key market categories, with a leading position in enhanced water and attractive brands in water and energy drinks. 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). This structure will allow glaceau to continue to win in the marketplace by maximizing its focus, speed, sales and execution capabilities, while leveraging the scale of CCNA's resources in supply chain, marketing and consumer insights, large customer management and foodservice. Coca-Cola 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.