An asset purchase agreement between Monster Beverage and Vital Pharmaceuticals (VPX Sports) provides that a Monster subsidiary will purchase all of Bang Energy’s assets.
Following last week’s report that an auction notice for the sale of VPX Sports had been canceled, Monster was now expected to complete the acquisition.
The acquisition includes Phoenix, Arizona, US-based Bang Energy’s performance beverages, related businesses, and beverage production facility. Receiving Bankruptcy Court approval is one of the closing conditions that must be met for the deal to go through.
Although Monster expressed optimism that the transaction would go through, there is no assurance that the Bankruptcy Court would approve it. In order to recover from numerous lawsuits that had negatively affected its “short-term outlook” and the financial burden of “reconstructing the company’s national distribution network, which resulted in a summer revenue gap,” VPX filed for Chapter 11 bankruptcy in Florida, the US, in October 2022.
Bang Energy is working with Huron Consulting Group as a financial advisor, Rothschild & Co. as an investment banker, and Latham & Watkins and Berger Singerman as legal counsel. Bang Energy is receiving strategy and communication advice from C Street Advisory Group.
