Coca-Cola has bought a 16.7% stake in Monster the energy drink manufacturer that equates to a $2.15bn cash deal.
The deal is subject to regulatory approval but is expected to be completed by the end of the year or early 2015.
It will include the transfer of Monster’s non-energy drink portfolio, which includes Peace Tea and Hansen’s Natural Sodas to Coca-Cola and will also give the energy drink manufacturer access to Coca-Cola’s global distribution network.
In turn the Coca-Cola Company will transfer its energy drinks portfolio including Full Throttle, Burn, Mother, Play and Power Play, and Relentless, to Monster.
Muhtar Kent, chairman and chief executive of The Coca-Cola Company, said: “The Coca-Cola Company continues to identify innovative approaches to partnerships that enable us to stay at the forefront of consumer trends
in the beverage industry.
in the beverage industry.
“Our equity investment in Monster is a capital-efficient way to bolster our participation in the fast-growing and attractive global energy drinks category. This long-term partnership aligns us with a leading energy player globally, brings financial benefit to our company and our bottling partners, and supports broader commercial strategies with our customers to bring total beverage growth opportunities that will also benefit our core business.”
Shares in Monster were boosted by 22%, while Coca-Cola shares were up by 1.2% by close of trading.
Mark Banham, London
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