Coca-Cola has purchased a 16.7 percent stake in Monster Beverage for $2.15 billion in a "long-term partnership" in which the companies will swap some assets and share marketing, production and distribution.
Coca-Cola will transfer ownership of its worldwide energy business – including Nos, Full Throttle, Burn, Mother, Play and Power Play, and Relentless – to Monster; and Monster will transfer its non-energy business, including Hansen’s Natural Sodas, Peace Tea, Hubert’s Lemonade and Hansen’s Juice Products, to Coca-Cola Co.
"Importantly, the partnership strategically aligns both companies for the long-term by combining the strength of The Coca-Cola Co.’s worldwide bottling system with Monster’s dedicated focus and expertise as a leading energy player globally," Coke said in a statement.
"The Coca-Cola Co. will become Monster’s preferred distribution partner globally and Monster will become The Coca-Cola Co.’s exclusive energy play," the statement continued. "These agreements will deliver sustainable value to The Coca-Cola Co.’s global system and accelerate Monster’s opportunity to grow internationally."
Coke also will get two seats on Monster's board of directors. The transaction is expected to close late this year or early next.