Coca-Cola and Monster Beverage Corporation enter into long-term partnership

The Coca-Cola Company and Monster Beverage Corporation announced that they have entered into definitive agreements for a long-term strategic partnership that is expected to accelerate growth for both companies in the fast-growing, global energy drink category.

The soft drink giant will acquire an approximately 16.7 percent ownership interest in Monster and will have two directors the company’s Board of Directors. Pursuant to the terms of the transaction agreements, at the closing, The Coca-Cola Company will make a net cash payment of 2.15 billion USD and transfer its worldwide energy business to Monster. In exchange, Monster will issue to The Coca-Cola Company the shares of its common stock, transfer its non-energy business to the soft drink specialist, and enter into expanded distribution arrangements. The transaction, which is expected to close late in 2014 or early in 2015, is subject to customary closing conditions, including receipt of regulatory approvals.

“The transaction represents a unique opportunity for us and our shareholders, as we gain enhanced access to this powerful distribution system”, said Rodney C. Sacks, Chairman and CEO of Monster.