News: Tata Coffee acquires US co for $220 mn

(PTI 25/06/2006) Mumbai - The Tata Group on Sunday announced the acquisition of a US-based company for 220 million US dollars.

"Tata Coffee has acquired the US-based Eight O' Clock Company," a group spokesperson said.

The company informed the Bombay Stock Exchange that it has signed a definitive agreement to acquire the Eight 0'Clock Coffee Company (EOC), USA, from Gryphon Investors for a total acquisition price of 220 million dollars.

EOC has over 100 years of brand history and retail coffee experience in the US and is a leading player in the branded whole bean segment and a category leader in the value gourmet segment in the US retail market.

Within the broad US retail coffee category, EOC is the third largest brand by volume behind Folgers and Maxwell House, the statement said.

EOC had net sales of 109 million dollars and EBITDA of 27 million dollars in 2005.

The acquisition provides a sizeable entry platform and an established brand to Tata Coffee in the 21 billion dollar US coffee market, the company said.