Celsius Holdings, Inc. has announced a definitive agreement to acquire Alani Nu, a rapidly growing energy drink brand, for approximately $1.8 billion in a cash-and-stock deal. The acquisition is touted as a strategic move to create a leading better-for-you functional lifestyle platform, broadening Celsius’ product offerings and enhancing its market position in the energy drink sector.
The transaction aims to combine Celsius’ innovative, health-oriented products with Alani Nu’s energetic and youthful appeal. Celsius will leverage Alani Nu’s established brand recognition and distribution networks, which have seen Alani Nu mark significant growth in recent years.
In a statement, Celsius Holdings CEO, John Fieldly, emphasized the synergies that the merger will bring. “This acquisition underscores our commitment to enhancing our brand portfolio and further solidifying our position as a leader in the functional beverage space. Alani Nu’s products resonate strongly with consumers, aligning perfectly with our philosophy of delivering healthy, performance-driven drinks,” Fieldly remarked.
The acquisition, expected to be completed by Q1 2024, positions Celsius to tap into the growing demand for healthier beverage options amid increasing health-conscious consumer trends. Alani Nu was co-founded by Katy Hearn, a well-known fitness influencer, who actively promoted the brand and has built a robust community of loyal customers.
In their recent reports, Celsius indicated that the Alani Nu brand has witnessed a remarkable CAGR of 250% over the past two years, validating its successful market penetration and appeal among younger demographics.
Combination of the two brands is anticipated to provide a diverse range of energy drinks, nutritional supplements, and snacks that cater to various lifestyles and preferences, further expanding their presence in both retail and online markets.
The financial structure of the deal has not been disclosed, but Celsius has stated that the acquisition will be funded through existing cash on hand, increased borrowing capacity, and equity financing – a clear indication of its confidence in the strategic advantage this merger will provide.
Both companies have reassured investors that operational efficiencies and shared resources among the two brands offer a promising outlook post-acquisition. Celsius’s shares have responded positively to the news, highlighting market optimism regarding the transaction’s potential benefits.
