Monster Beverage Inks $362M Deal to Acquire Competitor

CORONA, Calif. — Monster Beverage Corp. entered into an asset purchase agreement for Bang Energy with Vital Pharmaceuticals Inc.

Under the agreement a Monster subsidiary will acquire substantially all of Bang Energy's assets, including a beverage production facility located in Phoenix, for $362 million, inclusive of a cash purchase price, a $25 million deposit and assumption of certain liabilities.

The transaction is subject to the satisfaction of certain terms and closing conditions, which include obtaining Bankruptcy Court approval. If approved, Monster will acquire Bang Energy's performance beverages and related Bang Energy businesses.

Bang Energy filed for Chapter 11 protections under the U.S. Bankruptcy Code in October 2022. Monster noted that while it is hopeful the transaction will be completed, there is no guarantee it will receive Bankruptcy Court approval.

[Read more: Monster Making Its Entry Into Alcoholic Beverage Business]

Goldman Sachs called the proposed transaction a strategic positive, as Bang Energy was previously a competitive threat to Monster, and speculated that the company could have several options to create value. Options include repositioning and repackaging the Bang Energy brand to better target the fitness and performance energy drinks segment or integrate the Bang brand within its energy drink portfolio to utilize and expand Bang's existing retail shelf space.

Monster could also leverage the 400,000-square-foot production facility for energy products and/or alcohol production, accelerating its push into alcohol.

"We view the potential acquisition of Bang as a strategic positive for [Monster]," said Bonnie Herzog, Goldman Sachs senior financial analyst. "Overall, we believe post close this deal would provide [Monster] with optionality to accelerate growth."

Based in Corona, Monster's subsidiaries develop and market energy drinks, including Monster Energy energy drinks, Java Monster non-carbonated coffee and energy drinks, Reign Total Body Fuel high performance energy drinks and NOS energy drinks.