Celsius Holdings to acquire nutrition brand Alani Nu for US$1.8b
Celsius Holdings, Inc. (Nasdaq: CELH) has announced a definitive agreement to acquire Alani Nutrition LLC (Alani Nu) for US$1.8 billion ($2.8 billion). The deal includes US$150 million ($234.8 million) in tax assets, bringing the net purchase price to US$1.65 billion ($2.58 billion). The acquisition will be paid through a combination of cash and stock.
The merger brings together two rapidly growing brands in the US energy drink market, creating a stronger platform to meet increasing consumer demand for zero-sugar, functional beverages.
Transaction snapshot
Deal value: US$1.8 billion ($2.8 billion)
Deal multiples: ~3x revenue; ~12x synergised EBITDA
Deal type: Acquisition (cash and stock mix)
Founded in 2018, Alani Nu is a female-focused brand offering functional beverages and wellness products aimed at Gen Z and millennial consumers. The acquisition expands Celsius’ reach into this demographic, allowing the company to target incremental growth opportunities and broaden its market presence.
John Fieldly, Chairman and CEO of Celsius, said the acquisition marks a pivotal moment for the company’s expansion into the health-focused functional beverage space. He highlighted Alani Nu’s loyal community and brand strength as valuable assets for future growth.
Katy Schneider, Co-Founder of Alani Nu, expressed confidence in Celsius’ ability to scale the brand while maintaining its core identity. Max Clemons, Co-Founder and Co-CEO of Congo Brands, echoed this sentiment, noting the potential for significant growth under Celsius’ leadership.
Retail sales of Alani Nu increased by 78% year over year, with its market share rising to 4.8%, up by around 200 basis points compared to the previous year.
Upon closing, Alani Nu will operate under Celsius’ umbrella, with key members of the Congo Brands leadership team continuing in advisory roles to support the integration process.
Strategic highlights
Market leadership: The acquisition creates a leading platform at the intersection of major consumer trends, with combined sales expected to reach around US$2 billion ($3.1 billion).
Category growth: Strengthens Celsius’ position in the energy drink market, which is forecasted to grow at a 10% CAGR from 2024 to 2029.
Demographic expansion: Broadens Celsius’ reach into wellness-focused female consumer segments.
Operational synergies: The deal is expected to generate US$50 million ($78.2 million) in cost synergies over two years and be accretive to cash EPS within the first year of ownership.
The total consideration includes US$1.275 billion ($2 billion) in cash, a US$25 million ($39 million) performance-based earn-out, and US$500 million ($782 million) in newly issued Celsius shares. The stock issuance will represent an 8.7% pro-forma ownership stake in Celsius.
Celsius will fund the cash portion through US$900 million ($1.41 billion) in committed debt financing and US$375 million ($586 million) from cash on hand.
The stock consideration will be subject to a two-year lock-up period, aligning long-term interests between both companies. A transition services agreement and consulting contracts will ensure leadership continuity during the integration phase.
