Deals and IPOs

Monster Beverage to buy American Fruits & Flavors

Cans of Monster Energy Drink are displayed on a shelf at a convenience store in Kentfield, Calif.
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Monster Beverage announced on Tuesday that it will acquire American Fruits & Flavors for $690 million.

Monster expects the deal to close by the end of the first quarter of 2016, and the deal comes with roughly $87 million in adjusted operating income for the full-year ending Dec. 31, 2015, according to a statement.

Monster CEO Rodney Sacks said the transaction will allow Monster to expand its flavor development operations.

"Not only have we secured the intellectual property of our flagship green energy drink and many of our other key flavors, but we are also partnering with an organization I have personally worked with and known for over 20 years," Sacks said, in a statement.

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Monster's vice chairman and president, Hilton Schlosberg, noted the company's growth prospects.

"We have taken an important step by integrating our existing and new flavor development and flavor production under the umbrella of our ownership and are confident AFF will act as a catalyst for further success," Schlosberg said, in the statement.

Barclays and Jones Day served as financial and legal advisors. Lazard and Sheppard, Mullin, Richter & Hampton served as financial and legal advisors, respectively.