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Coca-Cola gulps down stake in Monster for $2.2B

Aug 14, 2014 - The Deal Pipeline
Mergers and Acquisitions

Coca-Cola Co. said Thursday it will take a 16.7% equity stake in Monster Beverage Corp. in a $2.15 billion deal that means Monster will become the beverage giant's exclusive offering in the fast-growing energy drinks segment.

The news sent Monster's stock up nearly 20%, to $85.35 per share in after-hours trading. It closed the day up under 1%, to $71.65, giving it a market capitalization of nearly $12 billion.

In addition to a $2.15 billion cash investment, Coca-Cola will transfer it...