Monster Beverage eyes assets of Bang Energy amidst bankruptcy

Monster Beverage Corporation, the maker of energy drink Monster Energy, and Vital Pharmaceuticals (d/b/a Bang Energy) have revealed their plans to enter an asset purchase agreement (APA).

Under this agreement, a subsidiary of Monster Beverage would acquire the majority of Bang Energy’s assets. This transaction includes a beverage production facility based in Phoenix, Arizona, but is contingent upon certain terms and closing conditions, including the crucial approval from the Bankruptcy Court.

The APA’s conditions, if met, would allow Monster Beverage to procure Bang Energy’s performance beverages and associated businesses. This acquisition would occur through the purchase of a substantial majority of Bang Energy’s assets.

However, despite Monster Beverage’s optimism about the transaction’s completion, the company recognizes that its fruition is not guaranteed, given the requirement of Bankruptcy Court approval. It is important to note that Bang Energy filed for Chapter 11 protections under the US Bankruptcy Code in October 2022, further complicating the potential transaction.

Vital Pharmaceuticals, a Florida-based company also known as Bang Energy and VPX Sports, has been a major player in the market since 1993. The company has made a name for itself through the development of flavorful performance beverages, supplements, and workout products catering to high-energy lifestyles.

Besides Bang Energy, one of the top energy drink brands in the US, the company’s high-quality product portfolio includes keto-friendly Meltdown, Quash, Vooz, and Redline.