Coca-Cola has bought out New York state-based health drinks firm Glaceau for $4.1bn (£2bn).

 

The deal, Coca-Cola's biggest ever acquisition, marks a massive investment in the market for beverages trading on a sporty lifestyle.

 

Glaceau will continue to operate as a stand-alone business unit of Coca-Cola, which wants the new product range to kick-start lacklustre US sales.

 

Coca-Cola promised that Glaceau would "create value" for its shareholders.

 

Glaceau was founded in 1996 and attracted a $677m investment from Indian conglomerate Tata in 2006. That stake valued the Glaceau business at $2.2bn.

 

Coca-Cola has enjoyed a successful launch of its calorie-free Coke Zero in Europe earlier this year, emphasising the potential for branching away from sweeter beverages.

 

Glaceau presents itself as a purveyor of "responsible hydration".

 

Its three top executives, including CEO and founder J Darius Bikoff, will remain in place for at least three years, according to Coca-Cola.