Coca-Cola buys a 16% stake in Monster Beverage for $2.15bn
Coca-Cola has signed an agreement to buy a 16.7% stake in Monster Beverage wit for a long-term strategic partnership.
Under the deal, Coca-Cola will pay $2.15bn in cash to Monster and also transfer ownership of its energy drinks brands, including NOS, Full Throttle, Burn, Mother, Play and Power Play, and Relentless.
Monster willissue its shares and transfer non-energy businesses, including Hansen's Natural Sodas, Peace Tea, Hubert's Lemonade and Hansen's Juice Products, to Coca-Cola.
The two companies will amend their current distribution agreement in the US and Canada under which Coca-Cola will become Monster's preferred distribution partner globally and Monster will become Coca-Cola's exclusive energy partner.
The transaction is expected to close late by early 2015.
Coca-Cola chairman and CEO Muhtar Kent 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.
"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."