Monster Beverage Corporation chief executive Rodney Sacks laid out a likely succession plan Thursday that will eventually see co-CEO Hilton Schlosberg taking over the role entirely, as Sacks is “considering” reducing his day-to-day duties sometime next year.

The announcement arrives in connection with a corporate initiative to commence a modified “Dutch Auction” tender offer of up to $3 billion in common stock at a to-be-determined price range. The company will use around $2 billion in cash on hand and an additional $1 billion from a new revolving credit facility and delayed draw term loan. A start date for the auction was not given.

Speaking during the company’s Q1 2024 earnings call, Sacks said that he and Schlosberg intend to participate in the buyback offer for “investment diversification and estate planning purposes.”

Sacks said he is “considering” reducing his responsibilities at Monster beginning in 2025, “while continuing to manage certain areas of the company’s business for which I’ve always been responsible.”

“My participation in particular may provide me some flexibility to consider my own potential options, which may also help the company continue succession planning for its next phase of leadership,” Sacks said.

Sacks didn’t clarify how long this wind-down period would last, but said the end goal will be for Schlosberg to take over as the sole CEO of the business while Sacks will remain chairman of the board.

Asked during the call’s Q&A session, Sacks said the decision to initiate a Dutch Auction came in response to “recent softness in the market” providing “an opportunistic time to execute at scale a transaction of this nature” where Monster can “repurchase a greater number of shares and do so more quickly than we could under the programs which we’ve implemented.”

Monster previously issued a Dutch Auction in 2016.

Born in South Africa, Sacks and his business partner Schlosberg acquired legacy beverage manufacturer Hansen Natural Corporation in 1990. Sacks served as CEO of the business until 2021 when Schlosberg joined him as co-CEO.

The company launched Monster Energy Drink in 2002, which quickly became its premier product and is today the largest energy drink manufacturer in the U.S. with annual revenue of over $7 billion, in addition to a global beverage operation.