Bang Energy

History

2023: Monster Beverage bought Bang Energy

On July 3, 2023, Monster Beverage Corporation announced an agreement to acquire the assets of rival beverage manufacturer Bang Energy from its parent, Vital Pharmaceuticals.

In October 2022, Vital Pharmaceuticals filed for bankruptcy under Chapter 11 of the U.S. Bankruptcy Code. One of the reasons was the loss in the trial with Monster Beverage, related to unreliable advertising. In this case, a California jury awarded $293 million in favor of Monster Beverage, and Bang Energy was prohibited from labeling its drinks as containing "Super Creatine."

Monster Beverage announces agreement to acquire assets of rival beverage maker Bang Energy

The amount of the deal between Monster Beverage and Bang Energy has not been officially announced. According to Bloomberg, we are talking about a figure of $362 million. Monster Beverage is expected to acquire almost all of its competitor's assets, including a soda company located in Phoenix, Arizona. The asset transfer is overseen by lawyers Evercore Group LLC, Pachulski Stang Ziehl & Jones LLP, Akerman LLP, Huron Consulting Group, Rothschild & Co, Latham & Watkins LLP, Berger Singerman LLP and C Street Advisory Group.

It is noted that to complete the merger, it is necessary to obtain judicial permission. The deal could be thwarted by the U.S. Federal Trade Commission (FTC), which said it needed additional time to conduct the necessary checks. However, if approval is not obtained, Bang Energy will completely cease to exist. This will result in a reduction of approximately 700 jobs.

Either Bang Energy will be sold to Monster Beverage or there will be an immediate liquidation, said Bang Energy lawyer Andrew Sorkin[1]

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