GLACEAU acquired by COCA-COLA

The Coca-Cola Company agreed on 25 May 2007 to buy Energy Brands, better known as Glaceau, for in cash, adding an enhanced water business to Coca-Cola North America. Founder and chief executive J. Darius Bikoff, president Mike Repole and Mike Venuti committed to stay at the head of the business for at least three years, with the other key managers also remaining in place. Glaceau was to run as a separate unit within Coca-Cola North America, keeping its own sales teams while using the parent's supply chain, marketing and large-account management. Distribution remained the open question: Muhtar Kent, Coca-Cola's president and chief operating officer, said the company would work out with Glaceau's distributors and Coca-Cola's bottling partners which route to market to adopt, and pointed to international expansion of the brands over time. Coca-Cola expected the deal to add to its earnings per share in the first full year after completion. Both boards had approved the transaction, which was due to close in the summer of 2007 subject to regulatory review.