A presentation on : Merger of Tata Tea - Tetley
Largest cross-border acquisition that marked the culmination of Indian company?s - Tata Tea's strategy of pushing for aggressive growth and worldwide expansion.
The acquisition of Tetley made Tata Tea the second biggest tea company in the world with the expected combined turnover worth Rs. 2,800 ? 2,900 crore. (The first being Unilever, owner of Brooke Bond and Lipton).
The size of the deal was big, and was the first ever leveraged buy-out (LBO) by any Indian company ? Tata Tea allowing to minimize it?s cash outlay in making the deal.
Acquisition price paid to Tetley was 271 mn pounds (US $450 m) representing more than four times the net worth of Tata tea at US $ 114 mn.
Structure of the deal
Concept of SPV explained
Securitization the process
Leverage Buyout ?
Post Merger Performance