Blog: Is Hansen a tasty proposition for Coca-Cola?

Michelle Russell | 8 October 2010

Soft drinks firm Hansen Natural has again been touted as a potential takeover candidate, with The Coca-Cola Co heading the list of suitors.

However, Hansen's "aggressive drive" into Europe may have pushed up the premium any potential bidder such as Coca-Cola would need to pay to snare the firm, Reuters reported this week.

Analysts today (8 October) claimed Hansen Natural's Monster Energy is expected to grow faster than the energy drinks category in the US. No doubt a further reason why the US-based firm might be an attractive deal.

Hansen signed a distribution deal with Coca-Cola Enterprises at the end of 2009.

"To a company like Coke, Hansen is worth more on their platform than it is as an independent entity ... so they would probably be willing and able to pay a little bit more than what we think the stock is worth on its own," Morningstar analyst Philip Gorham said.

One to watch...

 

Hansen shares, valued at a little over $4bn, have gained almost two-thirds to $47 each since July 2009 - around 17 times forward earnings. For comparison, Coca-Cola trades at 15.7 times forward earnings and PepsiCo at 14.6 times, according to Reuters.



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