Monster Beverage (MNST) has reached an agreement to acquire craft beer and hard seltzer company CANarchy Craft Brewery Collective LLC. The $330 million transaction is expected to close in the first quarter of 2022. MNST shares rose 0.41% to close at $94.37 on January 13.
Monster Beverage is a U.S.-based company that develops, sells, and distributes energy drink beverages. Monster Beverage’s earnings report for Q4 2021 is scheduled for March 02, 2022.
With the acquisition, Monster Beverage will gain access to high-profile brands, including Cigar City, Deep Ellum, and Wasatch. However, the transaction does not include CANarchy’s standalone restaurants. Once the transaction closes, CANarchy will operate as an independent company.
The transaction provides Monster Beverage a pathway to enter the alcoholic beverage market and grow its already robust product portfolio. The company also stands to gain access to a strong infrastructure consisting of people, distribution, and licenses.
CANarchy also stands to benefit from the opportunity to leverage Monster Beverage’s expertise and capital resources to strengthen its alcoholic product offerings.
Evercore ISI analyst Robert Ottenstein recently reiterated a Buy rating on Monster Beverage with a $105 price target, implying 11.26% upside potential to current levels.
Consensus among analysts is a Strong Buy based on 10 Buys and 2 Holds. The average Monster Beverage price target of $107.10 implies 13.49% upside potential to current levels.
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