Market Overview

Coca-Cola Enters Into Long-Term Strategic Partnership With Monster

Share:
Related KO
Susquehanna 'Skeptical' On Monster, Initiates With Neutral Rating
The Susquehanna Note Moving Green Mountain Shares Up
5 Top IBD 50 Stocks Stay On Course Despite Sell-Off (Investor's Business Daily)

Coca-Cola Company (NYSE: KO) and Monster Beverage (NASDAQ: MNST) announced a long-term strategic partnership after Thursday's market close.

As part of the deal, Coca-Cola will purchase a 16.7 percent equity stake in Monster and will make Monster its sole play in the energy drink space.

Coca-Cola will have two directors on Monster's Board of Directors and expects to account for the investment under the equity accounting method.

"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," said Muhtar Kent, chairman and chief executive officer of The Coca-Cola Company. "Our equity investment in Monster is a capital efficient way to bolster our participation in the fast-growing and attractive global energy drinks category."

Rodney C. Sacks, chairman and CEO of Monster, commented, “We gain enhanced access to The Coca-Cola Company's distribution system, the most powerful and extensive system in the world. At the same time, we become The Coca-Cola Company's exclusive energy play, with a robust portfolio led by our Monster Energy line and The Coca-Cola Company's energy brands."

Posted-In: Muhtar Kent Rodney C. SacksNews M&A

 

Related Articles (KO + MNST)

Around the Web, We're Loving...

Get Benzinga's Newsletters