Monster Beverage to Acquire Bang Energy Out of Bankruptcy for $362 Million
Bang filed for chapter 11 last year after paying Monster a large settlement Monster’s acquisition of Bang would bolster the company’s already sizable market share. Photo: Jeenah Moon/Bloomberg News By Ben Glickman Updated July 3, 2023 1:42 pm ET Monster Beverage agreed to acquire bankrupt beverage maker Bang Energy in a deal that would bring the beleaguered brand under control of one of the industry’s largest players. Monster said in a June 28 bankruptcy court filing that it agreed to purchase Bang’s assets from bankruptcy proceedings for $362 million. The deal is subject to approval by bankruptcy court. Vital Pharmaceuticals, the owner of Bang, filed for chapter 11 bankruptcy protections in October after a jury ordered the company to pay Monster a $293 million
Monster’s acquisition of Bang would bolster the company’s already sizable market share.
Photo: Jeenah Moon/Bloomberg News
Monster Beverage agreed to acquire bankrupt beverage maker Bang Energy in a deal that would bring the beleaguered brand under control of one of the industry’s largest players.
Monster said in a June 28 bankruptcy court filing that it agreed to purchase Bang’s assets from bankruptcy proceedings for $362 million. The deal is subject to approval by bankruptcy court.
Vital Pharmaceuticals, the owner of Bang, filed for chapter 11 bankruptcy protections in October after a jury ordered the company to pay Monster a $293 million settlement. Monster sued its smaller competitor in 2018, claiming that Bang had misled consumers and overstated the health benefits of its drink.
Pending approvals from bankruptcy court and regulators, Monster will acquire Bang’s assets and its production facility in Phoenix.
Bang filed for bankruptcy last year after facing mounting costs from litigation. In addition to the suit from Monster, the company also said in its October filing that it agreed to a $115 million settlement with PepsiCo after a distribution deal between the two ended.
Legal battles have continued in the company. In March, the company sued its recently ousted chief executive, Jack Owoc, for allegedly refusing to return control of Bang’s social-media accounts on Twitter, Instagram and TikTok.
Monster, a large player in the energy drink industry, has faced increased competition and an inflation-pinched consumer in recent years. The company raised its prices as it faced falling profits and increased costs.
Over the past several years, various beverage makers have begun selling energy drinks. Celsius, an energy drink company which began selling in 2005, has jumped in popularity recently, quickly increasing its market share and securing a major investment from PepsiCo.
Monster’s acquisition of Bang would bolster the company’s already sizable market share. But the transaction still may be held up by review of the Federal Trade Commission.
According to the Wednesday court filing, Bang and Monster had received second requests from the FTC on June 22 to obtain more information about the planned acquisition.
Shares of Monster closed at $56.95, down less than 1% in Monday trading.
Write to Ben Glickman at [email protected]
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