Tata Tea Ltd. is planning to buy Good Earth Teas, according to a senior company executive. Speaking to Dow Jones Newswires today (13 October), Percy Siganporia, managing director of the Indian company, said that the acquisition of the US-based fruit and herbal tea brand will cost between US$30m and US$50m.
The transaction will go through Tetley US Holdings Ltd, the US-based unit of Tata subsidiary Tetley, Siganporia told the news agency.
Good Earth, presently owned by FMALI Herb Inc. and Good Earth Corp., produces green teas, white teas, red teas, herbal teas, vanilla teas and medicinal teas and has annual revenue of between US$16m and US$17m.
Tata Tea also told the Bombay Stock Exchange yesterday that it will fund the acquisition through borrowings.
Good Earth will continue to blend and pack teas at its base in Santa Cruz, California and Good Earth Teas will continue to trade under the Good Earth brand name, Tata said in the statement.
Sectors: Soft drinks
