Coca cola acquires 16.7 % stake in Monster Beverage

Coca cola acquires 16.7 % stake in Monster Beverage

Coca cola acquires 16.7 % stake in Monster Beverage

Multinatonal beverage corporation Coca cola company and Monster Beverage, energy and soft drinks manufacturer, made a deal about acquiring 16.7 % percent in this company for $2.15 Billion.

On January 2012, the comapny changed name from Hansen’s Natural to Monster Beverage Corporation.

“Our equity investment in Monster is a capital efficient way to bolster our participation in the fast-growing and attractive global energy drinks category,” said CEO of Coca-Cola Muthar Kent “This long-term partnership aligns us with a leading energy player globally, brings financial benefit to our Company and our bottling partners, and supports broader commercial strategies with our customers to bring total beverage growth opportunities that will also benefit our core business.”added

Rodney C. Sacks, CEO of Monster Beverage , said: “We gain enhanced access to the Coca-Cola Company’s distribution system, the most powerful and extensive system in the world. At the same time, we become the Coca-Cola Company’s exclusive energy play, with a robust portfolio led by our Monster Energy line and the Coca-Cola Company’s energy brands. Our business will be bolstered by The Coca-Cola Company energy brands we will acquire, providing us with complementary energy product offerings in many geographies, as well as access to new channels, including vending and specialty accounts.”

Monster’s financial advisor is Barclays and Jones Day served as legal advisor. Advisor of Coca cola was law firm Skadden, Arps, Slate, magher & Flom.

This deal is expected to close in late 2014 or early 2015.

Mr. Satkebay says :

In 2013 Monster Beverage had 35.1 % share of U.S. energy drink market in 2013, second to Red Bull with 42.9 % share.This move helps Coca Cola company to reach increased soda revenues. On the other hand Monster beverage earn to access to Coca Cola extensive global distribution system.

 

Chairman and CEO of Coca Cola company ………………Muthar Kent………………….(2008-present)………………….$ 20 400 000 (2013)

Chairman and CEO of Monster Beverage………………Rodney C. Sacks……………….(1992-present)……………………$ 6 223 793 (2013)

 

COCA COLA COMPANY

MONSTER BEVERAGE

Revenue

$ 46.854 billion (2013)

$ 2.246. Billion

Operating income

$ 10.228 billion (2013)

$ 572.916 Million

Profit

$ 8.584 billion (2013)

$ 338.661 Million

Total assets

$ 90.055 billion (2013)

$ 1.42 billion (2013)

Total Equity

$ 33.44 billion (2013)

$ 992.28 million (2013)

Employees

130 600 (2013)

2013 (2013)

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