Monster Beverage shares are up more than 20% after Coca-Cola announced plans to take a 16.7% stake in the company worth $2.15 billion.
Coke said it will a 16.7% equity stake in the company and will have two directors on Monster's board.
Following the announcement Coke shares are up 1.4% after hours.
In exchange, Monster will move its non-energy business to Coke and the company's will enter into expanded distribution agreements.
Coke CEO Muhtar Kent said, "Our equity investment in Monster is a capital efficient way to bolster our participation in the fast-growing and attractive global energy drinks category."
This deal from Coke comes after the company took a 10% stake in Keurig Green Mountain back in February
Here's the full release from Coca-Cola.
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