Shares of Monster Beverage soared 21% in after-hours trade Thursday after the energy drink maker said Coca-Cola will acquire a 17% ownership stake in the company as part of a new long-term partnership agreement.
As part of the agreement, Coke will make a $2.15 billion cash payment, and transfer its global energy drink business to Monster.
In turn, Monster will issue shares and transfer its non-energy drink business to Coke.
Monster shares were trading at $86.50 in the after-hours session, well above the all-time closing high of $78.72 seen on June 18, 2012.
Coke’s stock, a component of the Dow industrials, rose 1.2% after-hours.