VPX Sports receives bankruptcy court approval of sale to Monster

By Sarah Lizee

Olympia, Wash., July 14 – Vital Pharmaceuticals, Inc., which does business as VPX Sports, received court approval of an asset purchase agreement with Blast Asset Acquisition LLC, a subsidiary of Monster Beverage Corp., according to documents filed Friday with the U.S. Bankruptcy Court for the Southern District of Florida.

The cash purchase price is $362 million.

VPX has also lined up a settlement agreement with Monster, which aims to resolve the various litigations between the parties.

The sale is subject to the Hart-Scott-Rodino Act, which requires premerger notification to the Federal Trade Commission and the Department of Justice.

Monster has indicated that it will not close the proposed sale until the waiting period outlined in the HSR Act has expired or been terminated.

On June 22, the FTC issued a “second request” to both Monster and the debtors, which prevents the parties from closing the transaction until compliance with the requests – a process that would likely take significant time in the absence of early termination.

The debtors and Monster have continued to advocate to the FTC in hopes of an early termination of the second-request period, as the asset purchase agreement represents the only alternative to a liquidation of the debtors.

The company has filed a motion for conversion in case the deal falls through.

The Pembroke Pines, Fla.-based maker of Bang energy drinks and other products filed Chapter 11 bankruptcy on Oct. 10, 2022 under case number 22-17842.

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