Mumbai, Maharashtra, India
Rabobank International and Rabo India Finance Pvt Ltd (RIF) (a 100% subsidiary of Rabobank International) announced that they have successfully concluded the acquisition financing of USD 191 million of Eight O'clock Coffee, USA by Tata Coffee Limited for a total acquisition value of USD 231 million.
This landmark transaction by the Tata Group is yet another foray into the international beverage market. Commenting on the transaction, Mr. R. K. Krishna Kumar (Chairman, Tata Coffee Limited) said "EOC provides an attractive entry platform in the US coffee market through established brands. The acquisition will transform Tata Coffee Limited from an Indian coffee company into a significant global player."
Mr. Sanjiv Bhasin (Managing Director and Chief Executive Officer) and Mr. Rajesh Srivastava (Managing Director and Head Corporate and Commercial Banking), RIF said "Rabobank is proud to be associated with the Tata Group, especially in its foods and beverages business and our unique understanding of these sectors have enabled a close proximity with the Tata Group's strategic vision".
Mr. Fergus Murphy (Regional Head Asia, Rabobank International) said that "Rabobank's participation in this transaction clearly establishes the institution's capacity and capability to be associated with large value cross border transactions with leading business groups in this region."
EOC, USA is a leading roaster and distributor of branded "value gourmet" and "whole bean" coffee with a market share of 52% and 46% respectively in the USA. The company distributes its product at Wal-Mart, Publix, Albertson's, A&P, Super Valu and Food Lion. Within the broad USA retail coffee category, EOC is the third largest brand by volume, behind Folgers and Maxwell House. The EOC brand is uniquely positioned in the coffee marketplace at a mid-level price point with high quality 100% Arabica beans and 150 years of brand equity. The sales have been growing at a CAGR of over 14% in the last 3 years.
The Tata Group has been pursuing its vision of being a large player in the international beverages market and with this acquisition is secured in both the tea and coffee segments in the USA and European markets. It follows a string of acquisitions by the group in various geographies such as Good Earth Tea in the USA and JEMCA in the Czech Republic.
Rabobank has been associated with the Tata Group through its Food and Agribusiness strategy since the last 7 years and was the sole underwriter and arranger in the Tetley acquisition as well.
About Rabo India Finance Private Limited
Rabo India Finance Pvt Ltd provides innovative sector specific knowledge-based customised solutions in the following core competencies: Food & Agribusiness, Telecom, Media and Information Technology, Life Sciences, Corporate Finance, Renewable Energy & Carbon Credits. Rabo India Finance provides the entire spectrum of fund and fee based products and services in India drawing on its local resources as well as Rabobank's global network. With a Category 1 Merchant Banking license RIF is able to offer investment banking products that include advising demanding corporates on transactions ranging from capital structure to maximisation of client shareholder value and defense against takeovers.
Sunher Thanawalla ( Associate Director & Head, Corporate Communications), Rabo India Finance Pvt. Ltd., +91 (22) 2203 4567 Extn: 414 sunher.thanawalla@rabobank.com
Source: Rabo India Finance Pvt. Ltd. (Business Wire India)
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