Monster Beverage Corporation to Acquire CANarchy Craft Brewery Collective
January 13 2022 - 8:05AM
Monster Beverage Corporation (NASDAQ: MNST) announced today that it
has entered into a definitive agreement to acquire CANarchy Craft
Brewery Collective LLC, a craft beer and hard seltzer company for
$330 million in cash.
The transaction will bring the Cigar City (Jai Alai IPA and
Florida Man IPA), Oskar Blues (Dale’s Pale Ale and Wild Basin Hard
Seltzer), Deep Ellum (Dallas Blonde and Deep Ellum IPA), Perrin
Brewing (Black Ale), Squatters (Hop Rising Double IPA and Juicy
IPA) and Wasatch (Apricot Hefeweizen) brands to the Monster
beverage portfolio. The transaction does not include CANarchy’s
stand-alone restaurants.
The transaction is expected to close in the first calendar
quarter of 2022 and is subject to customary closing conditions,
including regulatory approvals. Monster’s organizational structure
for its existing energy beverage business will remain unchanged.
CANarchy will function independently, retaining its own
organizational structure and team, led by Tony Short.
“This transaction provides us with a springboard from which to
enter the alcoholic beverage sector,” said Monster’s Vice Chairman
and Co-Chief Executive Officer Hilton Schlosberg. “The acquisition
will provide us with a fully in-place infrastructure, including
people, distribution and licenses, along with alcoholic beverage
development expertise and manufacturing capabilities in this
industry.”
“The addition of CANarchy and its brands to the Monster beverage
portfolio represents an excellent opportunity to further grow our
already robust product offerings,” added Monster’s Chairman and
Co-Chief Executive Officer Rodney Sacks. “We are excited to build
and expand upon CANarchy’s existing brands with innovative new
products.”
“The team at CANarchy is thrilled to be joining Monster,” said
CANarchy’s Chief Executive Officer Tony Short. “We look forward to
capitalizing on the combined expertise of Monster and CANarchy to
further strengthen our current alcoholic product offerings, expand
our product portfolio to meet the ever-changing needs of our
customers and to grow our business.”
Evercore served as financial advisor, and Jones Day served as
legal advisor to Monster. Latham & Watkins served as legal
advisor to CANarchy.
Monster Beverage CorporationBased 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® energy drinks, Monster Energy
Ultra® energy drinks, Java Monster® non-carbonated coffee + energy
drinks, Espresso Monster® non-carbonated espresso + energy drinks,
Monster Rehab® non-carbonated tea + energy drinks, Monster Hydro®
non-carbonated refreshment + energy drinks, Monster HydroSport
Super Fuel® non-carbonated advanced hydration + energy drinks,
Monster Dragon Tea® non-carbonated energy teas, Muscle Monster®
non-carbonated energy shakes, Monster MAXX® maximum strength energy
drinks, Reign Total Body Fuel® high performance energy drinks,
Reign Inferno® thermogenic fuel high performance energy drinks,
NOS® energy drinks, Full Throttle® energy drinks, Burn® energy
drinks, Samurai® energy drinks, Relentless® energy drinks, Mother®
energy drinks, Play® and Power Play® (stylized) energy drinks, BU®
energy drinks, Nalu® energy drinks, BPM® energy drinks, Gladiator®
energy drinks, Ultra Energy® energy drinks, Live+® energy drinks,
Predator® energy drinks and Fury® energy drinks. For more
information, visit www.monsterbevcorp.com.
CANarchy Craft Brewery Founded in 2015,
CANarchy is a disruptive collective of like-minded brewers
dedicated to bringing high-quality, innovative flavors to drinkers
everywhere. The portfolio of craft brands includes offerings from
Oskar Blues Brewery, Cigar City Brewing, Squatters Craft Beers,
Wasatch Brewery, Deep Ellum Brewing Company and Perrin Brewing
Company. CANarchy, a top 10 US craft brewery, provides craft
beverages throughout the United States and 20 countries and U.S.
territories.
Forward-Looking StatementsCertain 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. The Company 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 the Company, 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 the
Company’s reports filed with the Securities and Exchange
Commission, including our annual report on Form 10-K for the year
ended December 31, 2020, and our subsequently filed quarterly
reports. The Company’s actual results could differ materially from
those contained in the forward-looking statements. The Company
assumes no obligation to update any forward-looking statements,
whether as a result of new information, future events or
otherwise.
CONTACTS:
Rodney C. SacksChairman and Co-Chief Executive Officer(951)
739-6200
Hilton H. SchlosbergVice Chairman and Co-Chief Executive
Officer(951) 739-6200
Roger S. Pondel / Judy Lin SfetcuPondelWilkinson Inc.(310)
279-5980
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