Monster Beverage In Deal With Vital Pharma To Buy Bang Energy Assets; Terms Not Disclosed

(RTTNews) - Monster Beverage Corp. (MNST) announced on Monday that it has entered into an asset purchase agreement with Vital Pharmaceuticals, Inc., d/b/a Bang Energy and as VPX Sports.

Under the deal, a Monster unit will buy all of Bang Energy's assets including a production facility in Arizona.

The acquisition includes Bang Energy's performance beverages and related Bang Energy businesses.

The asset purchase agreement is subject to certain terms and closing conditions, including obtaining Bankruptcy Court approval.

Bang Energy had filed for Chapter 11 protections under the U.S. Bankruptcy Code in October 2022, citing multiple factors including a failed distribution deal, declining market shares and lawsuits.

Though Monster is hopeful that the transaction will be completed, there is no guarantee it will receive an approval from the Bankruptcy Court.

In the deal, Evercore Group LLC is acting as investment banker to Monster, while Huron Consulting Group is acting as financial advisor and Rothschild & Co is acting as investment banker to Bang Energy.

In pre-market activity, shares of Monster are trading at $57.36 down 0.14% or $0.08 on Nasdaq.