Celsius Holdings announced Thursday that it will acquire energy drink rival Alani Nu for $1.8 billion, including $150 million in tax assets, for a net purchase price of $1.65 billion, comprising a mix of cash and stock. Following this announcement, Celsius Holdings' stock surged by 21%.
As per the official statement, the acquisition will create a leading health-focused beverage platform to meet the growing demand for zero-sugar energy drinks. The deal comes amid slowing revenue growth for Celsius, including year-over-year declines in the past two quarters. The deal is expected to close in the second quarter of 2025.
Deal Details: Cash, Stock, and Debt Financing
The purchase price consideration includes $1,275 million of cash and a $25 million earn-out and $500 million (or approximately 22.5 million shares) of newly issued restricted shares of Celsius Holdings common stock, which represents approximately 8.7% pro-forma ownership.
The cash consideration consists of fully committed debt financing of $900 million and approximately $375 million of cash on hand. The company's liquidity position is expected to remain robust, with pro-forma net leverage of approximately 1.0x5 and sufficient cash on the balance sheet.
The stock portion will be subject to a lock-up agreement, meaning it cannot be sold immediately and will be released gradually over two years. This ensures long-term commitment to the company's growth.
Celsius' Board of Directors approved the deal, but it still requires regulatory approvals.
Alani Nu Reports Strong Sales Growth Ahead of Celsius Acquisition
Retail sales of Alani Nu in the United States, including convenience stores, grew by 78% compared to the previous year, according to Circana's report for the four weeks ending Jan. 26 this year.
During this time, Alani Nu held a 4.8% share of dollar sales, which was about two percentage points higher than the same period last year. After the acquisition is completed, Alani Nu will become part of Celsius.
Key leaders from Congo Brands have agreed to stay on as advisors to help maintain business growth and continuity.
Celsius and Alani Nu Leaders Express Confidence in Partnership and Future Growth
John Fieldly, Chairman and CEO of Celsius, said that the company is at an important stage in the growing market for healthier, functional lifestyle products. He acknowledged the strong community and loyal customers that Alani Nu has built, along with its genuine brand and partnerships.
Katy Schneider, Co-Founder of Alani Nu, shared that the brand was created in 2018 to help women feel their best, both inside and out. She expressed pride in seeing Alani Nu grow into a movement that empowers strong and confident women.
Max Clemons, Co-Founder and Co-CEO of Congo Brands, which operates Alani Nu, said: "We believe Celsius can unlock key growth opportunities for Alani Nu and are excited to partner with John and the Celsius team as they continue to disrupt and grow the functional beverage space."
