Monster Coca Cola Agreement
ATLANTA – CORONA, Calif.—- (BUSINESS WIRE)– Coca-Cola Company (NYSE: KO) and Monster Beverage Corporation (NASDAQ: MNST) today announced final agreements for a long-term strategic partnership that is expected to accelerate the growth of both companies in the global fast-growing energy drink category. The innovative new partnership uses the respective strengths of The Coca-Cola Company and Monster to create compelling value for both companies and shareholders. “Our agreement allows us to focus on our core energy business while leveraging the power of the Coca-Cola Company`s powerful distribution and bottling system around the world,” said Hilton H. Schlosberg, Vice President and President of Monster. “The objectives of the management teams of both companies are more oriented, which significantly improves Monster`s position as one of the world`s leading energy drinkers. We expect the transaction to significantly accelerate our international growth and results, and we plan to explore all available options to return a significant amount of cash to our shareholders,” added Schlosberg. Hilton Schlosberg, VC and president of Monster, added: “There is a problem in an agreement that we have agreed to go civilly to arbitration and determine what procedure is appropriate. The relationship has therefore not changed, and the way in which this situation is managed is carried out by both parties on a civil basis, in accordance with the agreement. Last year, Monster accused Coca-Cola of violating a non-compete agreement reached by the companies in 2015, when Coke bought 16.7% of the monsters and agreed to distribute the company`s energy drinks in the United States and Canada. Subsequently, they extended the agreement to include distribution in other overseas markets. Coke has also transferred ownership of its energy drinks business, including NOS and Full Throttle, to Monster.
Under the terms of the transaction agreements, Coca-Cola Company will make a net payment of $2.15 billion at closing and transfer its global energy business to Monster. In return, Monster will issue the shares of Monster`s common shares to Coca-Cola Company, transfer its non-energy business to Coca-Cola Company and enter into extensive distribution agreements. The transaction, which is expected to close in late 2014 or early 2015, is subject to customary closing conditions, including obtaining administrative approvals. Coca-Cola Company (NYSE: KO) is the world`s largest beverage group that refreshes consumers with more than 500 sparkling and silent brands. Led by Coca-Cola, one of the world`s most valuable and well-known brands, our portfolio includes $17 billion from brands such as Die Coket, Fanta, Sprite, Coca-Cola Zero, Vitaminwater, Powerade, Minute Maid, Simply, Georgia and Del Valle. Worldwide, we are the 1 suppliers of champagne drinks, coffee, fruit juices and juices. With the world`s largest beverage distribution system, consumers in more than 200 countries enjoy our beverages at a rate of 1.9 billion servings per day. With an ongoing commitment to building sustainable communities, our company focuses on initiatives that reduce our ecological footprint, support active and healthy living, create a safe and inclusive work environment for our employees, and promote the economic development of the communities in which we operate. Together with our bottling partners, we are one of the top 10 private employers in the world with more than 700,000 system partners. For more information, visit Coca-Cola Journey on www.coca-colacompany.com, follow us on Twitter at twitter.com/CocaColaCo, visit our Coca-Cola Unbottled blog, under www.coca-colablog.com or visit LinkedIn at www.linkedin.com/company/the-coca-cola-company.