Tata Tetley
TATA TEA (GB) LIMITED
The proposed acquisition:
As part of Tata Tea’s strategic intent to rely less heavily on black tea revenues and position itself to benefit from the growing convergence between the tea beverages business and other beverage segments, Tata Tea and the Tata Group have recently acquired a 30% equity stake (the “Acquisition”) in Energy Brands Inc. (“Energy Brands”) for an overall consideration of USD677m. Energy Brands is a “new age”beverage company that was formed in 1996 and is engaged in the branding and marketing of enhanced water. It is one of the fastest growing beverage companies in the USA(CY2005 revenue growth of 89% and sales of USD176m).
Of the 30% shareholding acquired in Energy Brands, 25% (“the Tetley Percentage”) has been acquired by a 100% subsidiary of TTGB, Tata Tea (GB) Investments. The Tetley Percentage has been financed by a mixture of debt and equity raised at TTGB level and through a limited recourse ring-fenced loan raised in Tata Tea (GB) Investments. The remaining 5% equity stake (“the TS percentage”) has been acquired by Tata Limited, a 100% subsidiary of Tata Sons
The company
Tata Tea and Tata Tea (GB):
In March 2000, Tata Tea Limited (“Tata Tea”) acquired The Tetley Group Ltd for £271m through its UK subsidiary Tata Tea (GB) Limited (“TTGB” or “Tetley” or the “Borrower”), representing what was then the largest cross-border acquisition by an Indian company. Acquisition finance on the Tetley balance sheet at the time of £205m represented 5.1 times the proforma FY2000 EBITDA. Tetley has performed steadily since its acquisition by Tata Tea and has undergone two refinancings. By April 2006, Tetley had significantly reduced its leverage level (as represented by the Total debt/EBITDA ratio) to 3.57.
Tata Tea, the majority shareholder in TTGB, is one of the largest dedicated vertically integrated tea companies in the world. It is part of the Tata Group, one of India’s foremost industrial conglomerates, which has
The proposed acquisition:
As part of Tata Tea’s strategic intent to rely less heavily on black tea revenues and position itself to benefit from the growing convergence between the tea beverages business and other beverage segments, Tata Tea and the Tata Group have recently acquired a 30% equity stake (the “Acquisition”) in Energy Brands Inc. (“Energy Brands”) for an overall consideration of USD677m. Energy Brands is a “new age”beverage company that was formed in 1996 and is engaged in the branding and marketing of enhanced water. It is one of the fastest growing beverage companies in the USA(CY2005 revenue growth of 89% and sales of USD176m).
Of the 30% shareholding acquired in Energy Brands, 25% (“the Tetley Percentage”) has been acquired by a 100% subsidiary of TTGB, Tata Tea (GB) Investments. The Tetley Percentage has been financed by a mixture of debt and equity raised at TTGB level and through a limited recourse ring-fenced loan raised in Tata Tea (GB) Investments. The remaining 5% equity stake (“the TS percentage”) has been acquired by Tata Limited, a 100% subsidiary of Tata Sons
The company
Tata Tea and Tata Tea (GB):
In March 2000, Tata Tea Limited (“Tata Tea”) acquired The Tetley Group Ltd for £271m through its UK subsidiary Tata Tea (GB) Limited (“TTGB” or “Tetley” or the “Borrower”), representing what was then the largest cross-border acquisition by an Indian company. Acquisition finance on the Tetley balance sheet at the time of £205m represented 5.1 times the proforma FY2000 EBITDA. Tetley has performed steadily since its acquisition by Tata Tea and has undergone two refinancings. By April 2006, Tetley had significantly reduced its leverage level (as represented by the Total debt/EBITDA ratio) to 3.57.
Tata Tea, the majority shareholder in TTGB, is one of the largest dedicated vertically integrated tea companies in the world. It is part of the Tata Group, one of India’s foremost industrial conglomerates, which has