8-KAcquisitions & DispositionsExhibits & Filings

COCA COLA CO 8-K Report, Acquisition Completed (Oct 26, 2007)

Filed October 26, 2007For Securities:KO

Summary

The Coca-Cola Company (KO) filed an 8-K on October 26, 2007, to report the completion of its acquisition of Glaceau (Energy Brands Inc.) on October 24, 2007. This transaction involved the purchase of the remaining 28.7% stake in Glaceau from the Tata Entities (Tata Tea (GB) Investments Limited, Tata Limited, and Tata Tea (GB) Limited) for approximately $1.234 billion in cash. With this acquisition, Coca-Cola now owns 100% of Glaceau, a move that significantly expands its presence in the enhanced water and non-carbonated beverage market. This acquisition is a strategic step for Coca-Cola to bolster its portfolio beyond traditional carbonated soft drinks, targeting growing consumer demand for healthier and functional beverages. The integration of Glaceau's brands, such as Smartwater and Vitaminwater, is expected to enhance Coca-Cola's competitive position in this lucrative segment and drive future growth. Investors should note the substantial cash outlay and the escrow arrangement for potential indemnity claims as key financial aspects of this deal.

Key Highlights

  • 1Completion of acquisition of Glaceau (Energy Brands Inc.) on October 24, 2007.
  • 2Coca-Cola acquired the remaining 28.7% stake in Glaceau from the Tata Entities.
  • 3Total cash consideration for the acquisition was approximately $1.234 billion.
  • 4Approximately $120 million of the purchase price is held in escrow for potential indemnity claims.
  • 5The transaction results in Coca-Cola owning 100% of Glaceau.
  • 6Glaceau is a key player in the enhanced water and non-carbonated beverage market.

Frequently Asked Questions

The main purpose of this 8-K filing was to officially report the completion of The Coca-Cola Company's acquisition of the remaining shares of Glaceau (Energy Brands Inc.), thereby gaining full ownership of the company.

Coca-Cola paid approximately $1.234 billion in cash to the Tata Entities for their 28.7% stake in Glaceau.

The acquisition of Glaceau is significant because it allows Coca-Cola to gain 100% ownership of a rapidly growing brand in the enhanced water and non-carbonated beverage market, strengthening its portfolio and competitive position in this important segment.

The escrow account, holding approximately $120 million of the purchase price, is intended to cover any potential indemnity claims that Coca-Cola might have under the merger agreement with the sellers.