Tata Coffee acquires Eight O'Clock

Bangalore, June 25 (UNI) Tata Coffee Limited, a 51 per cent owned subsidiary of Tata Tea Limited, has signed a definitive agreement to acquire US based Eight O'Clock Coffee Company (EOC) from Gryphon Investors for a total acquisition price of USD 220 Million.

EOC is the third largest coffee brand by volume in USA behind Folgers and Maxwell House. It enjoys significant retail distribution strength with approximately 67 per cent of All Commodity Volume penetration of the US retail coffee market, according to a release by Tata Coffee here today.

The acquisition was on the line with the vision of the Tata Tea group to become a global beverage player.

Tata Coffee Chairman R K Krishna said that "Tata Tea is today one of the fastest growing beverage companies in the world and by the end of the decade, we expect the group, including Tata Tea, Tata Coffee and EOC combine to become one of the largest and most admired beverage players in the world. This move is fully in line with the Tata Group's international strategy." EOC Chief Executive Officer Ms Barbara Roth said that " this transaction creates a beverage player that is in a unique position to tap growth opportunities in the huge coffee market in the US and globally." UNI MSP GM1547