Acquisition

5 Oct 2006 07:00

Tata Tea Limited05 October 2006 TATA TEA BUYS MINORITY STAKE IN SOUTH AFRICAN TEA COMPANY JOEKELS Tata Tea Limited subsidiary, The Tetley Group, has signed a definitiveagreement to acquire a 33% stake in South African tea company, Joekels TeaPackers. The Tetley Group has funded the acquisition. Joekels is the third largest player in the South African tea market with a 5%value share of the market, and turnover of $5m. The company is owned and run byJonathan Kelsey and Joe Swart, who founded it in 1994. Joekels manufactures and sells a strong portfolio of brands spanning the economyand mainstream tea sectors. Joekels' main brands are two mainstream ranges,Phendula Tips and Rooibos Laager, the economy Tea Time range, Tea4Kidz, whichcomprises special blends for children, and a recent launch, San Aqua, which is aRooibos ice tea Joekels will have a licence to sell Tetley branded products in South Africa,Namibia, Botswana, Lesotho and Swaziland. They will produce these at theirfactory in Pinetown, KwaZulu Natal province. In a statement, Ken Pringle, Executive Vice Chairman and Chief Executive Officerof the Tetley Group, and director of Tata Tea said: "This acquisition is yet another development in our plan to grow the TataGroup's tea business around the world. It establishes a presence for Tetley inSouth Africa and some of its neighbouring countries. Joekels is a successfulwell run company and we anticipate that with their entrepreneurial spirit andthis new investment from Tetley, Jonathan and Joe will be able to accelerateJoekels growth." This information is provided by RNS The company news service from the London Stock Exchange