Pursuant to the terms of the transaction, Monster will purchase AFF for
"It is important to acknowledge this transaction represents much more than the acquisition of AFF," said
The acquisition brings Monster's primary flavor supplier in-house and secures Monster's ownership of the unique intellectual property created with AFF for its flagship Monster Energy® energy drinks as well as several other key flavors in its beverage portfolio.
"It is with great pleasure that we announce the acquisition of AFF as it marks a tremendous step in the continuing evolution of Monster," said
Sacks added that AFF's history of superb customer satisfaction, service and flavors expertise seamlessly complements Monster's business while providing an excellent platform for continued innovation.
"The transaction is strategic to Monster and presents a unique opportunity for us to take ownership of our most important flavors. It is also beneficial from a growth perspective and enhances earnings per share," said
The transaction also provides Monster with an opportunity to more effectively and profitably deploy AFF's flavor keys and intellectual property in Monster's growing international supply chain strategy.
The two companies have worked closely together since the mid-1990's in developing new products and taste profiles. AFF has grown at an approximately 8% organic revenue CAGR over the last four years, with Monster as its largest customer, representing approximately 87% of AFF's revenues in 2015. As a result of their highly integrated and close historical working relationship, the companies expect a seamless integration.
The acquisition is expected to be accretive to Monster's earnings during 2016.
Barclays served as financial advisor and
About American Fruits & Flavor
Certain statements made in this announcement may constitute "forward-looking statements" within the meaning of the
Rodney C. SacksChairman and Chief Executive Officer (951) 739-6200 Hilton H. SchlosbergVice Chairman (951) 739-6200 Roger S. Pondel/ Judy Lin Sfetcu PondelWilkinson Inc.(310) 279-5980
News Provided by Acquire Media