Monster Beverage Corporation (NASDAQ: MNST) and Vital Pharmaceuticals, Inc, along with certain of its debtor affiliates, "Bang Energy" have entered into an Asset Purchase Agreement (APA).
Under the agreement, MNST subsidiary would acquire substantially all of Bang Energy's assets, including a beverage production facility located in Phoenix, Arizona, for an undisclosed sum.
The APA will include acquiring Bang Energy's performance beverages and related Bang Energy businesses.
The deal is a move on Monster's part to capitalize on the growing energy drink category.
Bang Energy filed for Chapter 11 protections under the U.S. Bankruptcy Code in October 2022.
Monster held ~$3 billion in cash and equivalents as of March 31, 2023.
Price Action: MNST shares are trading lower by 1.29% at $56.70 on the last check Monday.