Monster to acquire flavor supplier
Energy drink manufacturer Monster Beverage Corporation says it has entered into a definitive agreement to purchase flavor supplier, and long-time business partner, American Fruits and Flavors (AFF) for $690 million. The strategic acquisition allows Monster to take ownership of its most important flavors. The transaction, which is expected to close in the first quarter of 2016, is subject to customary closing conditions.
“It is important to acknowledge this transaction represents much more than the acquisition of AFF,” says Fred Farago, founder and president of AFF. “We view today’s announcement as the integration of two companies that have enjoyed a tremendously symbiotic relationship over many years. We look forward to joining the highly respected and experienced Monster team to help the company further enhance its position as a global leader in the industry.”
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 energy drinks as well as several other key flavors in its beverage portfolio. 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.