Tata Tea on Thursday said it will acquire the Vitax and Flosana trademarks in Poland, from Premium Foods for an undisclosed amount.
Tata Tea's subsidiary, the Tetley Group, has signed a definitive agreement to this effect and it would also fund the acquisition.
The acquisition would catapult Tetley to the number two position in the Polish tea market with a 10.5 per cent value share and a turnover of 36 million dollars.
The combined turnover of Vitax and Flosana brands is $ 23 million.
"There is significant potential to grow the fruit and herbal market in Poland and it makes sense for us to acquire an established and successful range of fruit and herbal products, rather than start afresh with a new Tetley range," Tetley Group Managing Directors of Europe and Emerging Markets Garry Nield said.
Vitax is one of the leading players in the Polish speciality tea segment and their range of fruit, herbal and green teas complements the Tetley portfolio of black and Earl Grey teas.
This transaction will allow Tetley to offer the Polish tea drinker a wider choice of great tasting teas whilst continuing with strong distribution arrangements to deliver outstanding customer services, Nield added.
Premium Foods currently distribute the Tetley brand in Poland alongside Vitax and Flosana. This arrangement would continue after the acquisition.
The shares of the company were trading at Rs 798.50, up 2.86 per cent on the BSE.