Good Earth Corporation owns the Good Earth brand, which is licensed to FMALI Herb Inc, the acquisition by Tetley is being financed through borrowings, Tata Tea informed the Bombay Stock Exchange.
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, it said.
"This acquisition is an important contribution to our plans for growing the Tata Group's tea business around the world. We believe there is real potential for growth in the specialty tea sector of the US market and elsewhere in the world. Good Earth's strong product portfolio means it is well placed to leverage this potential," Ken Pringle, executive vice chairman and chief, Tetley Group, said.
"The experience and skills of Good Earth and Tetley complement each other well and will combine to create a significant new force in the US tea industry", he added.
Good Earth is a specialist tea brand in the US, with particular strength on the West Coast and has a 3.7 per cent share of the US specialty tea market, it added.
