Vital Pharmaceuticals
The firm represented California-based Monster Beverage Corporation in its acquisition of Vital Pharmaceuticals (VPX), the parent company of energy-drink maker Bang Energy, for $362,000,000. The deal is significant because it brings VPX out of chapter 11 bankruptcy and positions Monster Energy for further growth in the competitive energy beverage market. Prior to the acquisition, VPX faced severe financial difficulties, filing for chapter 11 bankruptcy protection in October 2022 with liabilities amounting to more than $1,700,000,000. One of its largest creditors was Monster Energy, which had approximately $500,000,000 in judgments against VPX over various legal claims, including false advertising, trade secret misappropriation, violation of the federal Computer Fraud and Abuse Act, and interference with contracts for retail shelf space. These legal disputes between the companies were a significant obstacle to VPX's financial recovery and prompted the need for an acquisition. The deal faced a number of challenges, including regulatory hurdles, legal disputes, value discrepancies, and complex bankruptcy proceedings.
