Monster Beverage To Acquire American Fruits Flavors

CORONA, CA -- Monster Beverage Corp. has agreed to acquire flavor supplier and longtime partner American Fruits & Flavors for $690 million. Upon closing the transaction, Monster will acquire approximately $87 million of adjusted operating income for the 12 months ended Dec. 31, 2015. The deal is expected to close in the first quarter of 2016.

The acquisition brings Monster's primary flavor supplier in-house and secures its ownership of the intellectual property created with AFF for its flagship energy drinks, as well as several other key flavors in its beverage portfolio.

Monster chairman and chief executive Rodney C. Sacks said the transaction provides Monster an opportunity to leverage new flavor technologies and differentiate itself from its largest competitors who do not have such capabilities.

The two companies have worked closely together since the mid-1990s in developing new products and taste profiles. Monster represented approximately 87% of AFF's revenues in 2015.