Coca-Cola Company, Monster Beverages Announce Long-Term Partnership

Photo Courtesy: The Coca-Cola Company(ATLANTA) — The Coca-Cola Company and Monster Beverage Corporation announced on Thursday that the two companies have entered into a long-term partnership that aims to accelerate growth for both companies.

As part of the deal, the Coca-Cola Company will purchase a 16.7-percent equity stake in Monster Beverage Corp. for about $2.15 billion and will receive two directors on Monster’s Board of Directors. Coca-Cola will also transfer its existing energy business — including the energy drinks NOS and Full Throttle, among others — to Monster, while Monster transfers its non-energy drinks to Coca-Cola, including Hansen’s Natural Sodas and Hubert’s Lemonade.

Coca-Cola hopes to expand distribution of Monster’s products in the U.S. and Canada, while also becoming Monster’s preferred global distribution partner.

The deal is expected to be closed in late 2014 or early 2015.

Muhtar Kent, chairman and CEO of the Coca-Cola Company, said the partnership “will create compelling and sustainable value for our system and our shareowners.”

Follow @ABCNewsRadio
Copyright 2014 ABC News Radio