Monster Beverage Corp. agreed to buy American Fruits & Flavors for about $690 million, bringing its long-time supplier of flavorings in house.
The acquisition, which is slated to close in the first quarter, is expected to add to earnings this year, Corona, California-based Monster said Tuesday in a statement.
The takeover shows Monster has finally found a use for the infusion of cash it received after selling a 17 percent stake to Coca-Cola Co. for about $2.15 billion in June. Monster said the deal announced Tuesday will secure its most important intellectual property in perpetuity and enhance its ability to develop new flavors.
Monster fell 0.8 percent to $128.79 at the close in New York, before the acquisition was announced. The shares have slid 14 percent this year amid a decline in the broader market.