Coca-Cola Goes...

The beverage industry has seen vast changes recently. With bottlers and distributors hooking up with one another in different markets and selling products other than thiers---there is no telling what is next.

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Coca-Cola (KO) shares popped higher May 25 after the beverage giant announced it will acquire Energy Brands Inc., known as Glaceau, and its full range of enhanced water brands for $4.1 billion in cash. The company said the deal gives it "a strong platform to grow its active lifestyle beverages."

The deal is Coke's largest acquisition, and the company expects it to shave 1 or 2 cents from earnings per share this year. But it expects the deal will add to its earnings in the first full year following the completion of the deal.

The deal will also curb Atlanta-based Coke’s share-buyback plan. Coke said it now expects to buy back $1.75 billion to $2 billion worth of shares this year, down from its previous plan of $2.5 billion to $3 billion.




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