Monster Enters into Asset Purchase Agreement with Vital Pharmaceuticals
July 03 2023 - 8:07AM
Business Wire
Proposed Transaction to Capitalize on Growing
Energy Drink Category
Vital Pharmaceuticals filed for Chapter 11
Protection in October 2022
Monster Beverage Corporation (NASDAQ: MNST) (“Monster”) and
Vital Pharmaceuticals, Inc. (together with certain of its debtor
affiliates, “Bang Energy”) today announced they have entered into
an Asset Purchase Agreement (“APA” or “Agreement”) under which a
subsidiary of Monster would acquire substantially all of Bang
Energy’s assets, including a beverage production facility located
in Phoenix, AZ (the “Transaction”). The Transaction is subject to
certain terms and closing conditions, which include obtaining
Bankruptcy Court approval.
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the full release here:
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Under the terms of the APA, subject to satisfaction of certain
closing conditions, Monster will acquire Bang Energy’s performance
beverages and related Bang Energy businesses through the purchase
of substantially all of Bang Energy’s assets.
While Monster is hopeful that the Transaction will be completed,
there is no guarantee that it will receive Bankruptcy Court
approval. Bang Energy filed for Chapter 11 protections under the
U.S. Bankruptcy Code in October 2022.
Advisors
Evercore Group LLC is acting as investment banker and Pachulski
Stang Ziehl & Jones LLP and Akerman LLP are acting as legal
counsel to Monster.
Huron Consulting Group is acting as financial advisor,
Rothschild & Co is acting as investment banker, and Latham
& Watkins LLP and Berger Singerman LLP are acting as legal
counsel to Bang Energy. C Street Advisory Group is acting as
strategy and communications advisor to Bang Energy.
Monster Beverage Corporation
Based in Corona, California, Monster Beverage Corporation is a
holding company and conducts no operating business except through
its consolidated subsidiaries. The Company’s subsidiaries develop
and market energy drinks, including Monster Energy® drinks, Monster
Energy Ultra® energy drinks, Juice Monster® Energy + Juice energy
drinks, Java Monster® non-carbonated coffee + energy drinks, Rehab®
Monster® non-carbonated energy drinks, Monster Hydro®
non-carbonated refreshment + energy drinks, Monster Energy® Nitro
energy drinks, Reign Total Body Fuel® high performance energy
drinks, Reign Inferno® thermogenic fuel high performance energy
drinks, Reign Storm® clean energy drinks, NOS® energy drinks, Full
Throttle® energy drinks, BPM® energy drinks, BU® energy drinks,
Burn® energy drinks, Gladiator® energy drinks, Live+® energy
drinks, Mother® energy drinks, Nalu® energy drinks, Play® and Power
Play® (stylized) energy drinks, Relentless® energy drinks, Samurai®
energy drinks, Ultra Energy® drinks, Predator® energy drinks and
Fury® energy drinks. The Company’s subsidiaries also develop and
market still and sparkling waters under the Monster® Tour Water™
brand name. The Company’s subsidiaries also develop and market
craft beers, hard seltzers and flavored malt beverages under a
number of brands, including Jai Alai® IPA, Dale’s Pale Ale®, Dallas
Blonde®, Wild Basin® hard seltzers and The Beast Unleashed™. For
more information visit www.monsterbevcorp.com.
About Bang Energy
Since 1993, Florida-based Vital Pharmaceuticals, Inc., d/b/a
Bang Energy and as VPX Sports, has developed delicious performance
beverages, supplements, and workout products to fuel high-energy
lifestyles. In addition to one of the top energy drink brands in
the U.S., Bang Energy, the company’s premium quality products
include keto-friendly Meltdown®, Quash®, Vooz™ and Redline®.
Forward Looking Statements
Certain statements made in this announcement may constitute
“forward-looking statements” within the meaning of the U.S. federal
securities laws, as amended, regarding the expectations of
management with respect to our future operating results and other
future events including revenues and profitability. Monster
cautions that these statements are based on management’s current
knowledge and expectations and are subject to certain risks and
uncertainties, many of which are outside of the control of Monster
that could cause actual results and events to differ materially
from the statements made herein. For a more detailed discussion of
these and other risks that could affect our operating results, see
Monster’s reports filed with the Securities and Exchange
Commission, including our annual report on Form 10-K for the year
ended December 31, 2022, and any subsequent filings as well as the
following: the expected timing and likelihood of completion of the
proposed transaction, including the timing, receipt and terms and
conditions of Bankruptcy Court approval; the occurrence of any
event, change or other circumstances that could give rise to the
termination of the Asset Purchase Agreement; the outcome of any
legal proceedings that may be instituted against the parties and
others following announcement of the Asset Purchase Agreement and
proposed transaction; the inability to consummate the proposed
transaction due to the failure to satisfy other conditions to
complete the proposed transaction; the amount of the costs, fees,
expenses and charges related to the proposed transaction; the
forfeiture of all or any portion of the deposit paid by Monster
under the APA; and the ability of Monster to successfully integrate
Bang Energy’s assets and recognize the anticipated benefits of the
proposed transaction. Monster’s actual results could differ
materially from those contained in the forward-looking statements.
Monster assumes no obligation to update any forward-looking
statements, whether as a result of new information, future events
or otherwise.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230703372090/en/
Monster Contacts: Roger S. Pondel / Judy Lin
PondelWilkinson Inc. (310) 279-5980
Bang Energy Contacts: C Street Advisory Group
vpx@thecstreet.com
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