Coca-Cola is an ever-expanding empire. First Coca-Cola acquired a stake in Green Mountain Coffee and now they see money signs in Monster Energy drink. According to reports, the soda company will pay $2.15 billion for a stake in Monster.
Coca-Cola and Monster Beverage announced Thursday afternoon that Coke will make a net cash payment of $2.15 billion in exchange for a 16.7% stake in Monster. Coke will also will also take two seats on Monster’s board of directors.
“Our equity investment in Monster is a capital efficient way to bolster our participation in the fast-growing and attractive global energy drinks category,” Muhtar Kent, Coca-Cola chairman and CEO, said in a statement. Kent added, “we have experienced first-hand Monster’s performance-driven and entrepreneurial culture, proven success in building and extending the Monster brand and their strong product innovation pipeline. We believe this partnership will create compelling and sustainable value for our system and our shareowners.”