Celsius Holdings Completes $1.8 Billion Acquisition of Alani Nu, Expanding Functional Beverage Portfolio

Key Points:
– Celsius acquires Alani Nu for $1.8B, expanding its zero-sugar beverage lineup.
– Alani Nu stays under Celsius, with leadership advising for brand continuity.
– The deal boosts market reach, blending Alani Nu’s online strength with Celsius’ retail power.

Celsius Holdings, Inc. (Nasdaq: CELH) has finalized its $1.8 billion acquisition of Alani Nutrition LLC (Alani Nu), strengthening its position in the rapidly growing functional beverage market. The deal, which includes $150 million in tax assets, effectively brings the net purchase price to $1.65 billion, paid through a combination of cash and stock. This acquisition expands Celsius’ portfolio of zero-sugar, health-focused energy drinks and positions the company to capitalize on increasing consumer demand for better-for-you beverage options.

Celsius has built a strong brand by catering to fitness-conscious consumers looking for functional energy drinks with zero sugar. With Alani Nu now under its umbrella, the company gains access to an established brand with a loyal following in the health and wellness space. The acquisition aligns with Celsius’ mission to provide innovative and flavorful products that cater to active lifestyles.

“The closing of this transaction further strengthens our ability to grow the energy drink category and reach new consumers who seek better-for-you, functional beverages as a healthier alternative to traditional, sugary energy drinks,” said John Fieldly, Chairman and CEO of Celsius Holdings.

Alani Nu, co-founded by fitness influencer Katy Hearn, has rapidly grown into a recognizable name in the industry, offering a variety of products including energy drinks, protein powders, and supplements. The brand’s appeal among health-conscious consumers makes it a natural fit within Celsius’ growing portfolio.

Under the terms of the deal, Alani Nu will continue to operate within Celsius, ensuring continuity in branding and product offerings. Key leadership members from Alani Nu will serve as advisors to Celsius, helping to maintain the brand’s identity while leveraging Celsius’ infrastructure and distribution network to expand its reach.

“Alani Nu has built a strong brand and a differentiated consumer base, which we believe will thrive and grow within the Celsius family,” said Alani Nu co-founder Max Clemons. “Thank you to the many Alani Nu employees and partners who have helped inspire and support our customers in their pursuit of active, wellness lifestyles. I look forward to working with the Celsius team to make Alani Nu products available to many more people and to continue creating great-tasting, functional products aligned with today’s wellness lifestyles.”

This acquisition is expected to unlock significant growth opportunities for both brands. Celsius’ established presence in retail and convenience store channels will provide Alani Nu with broader distribution, while Alani Nu’s strong online and direct-to-consumer business will complement Celsius’ expansion efforts.

The global energy drink and functional beverage market has seen substantial growth as consumers increasingly seek out healthier alternatives. With the addition of Alani Nu, Celsius is well-positioned to compete with industry giants like Monster and Red Bull by offering a broader range of health-conscious products.

As Celsius continues to innovate and expand, this acquisition sets the stage for increased market penetration, product innovation, and consumer engagement. By combining forces, Celsius and Alani Nu aim to reshape the functional beverage landscape and provide more options for those seeking energy and wellness in their drinks.

Celsius Acquires Alani Nutrition in $1.8 Billion Deal

Key Points:
– Celsius acquires Alani Nutrition in a $1.8 billion deal, expected to close in Q2 2025.
– The merger aims to create a leading functional beverage platform, catering to growing demand for zero-sugar alternatives.
– Celsius projects $2 billion in sales post-acquisition, with $50 million in cost synergies over two years.

Celsius Holdings has announced plans to acquire Alani Nutrition in a landmark $1.8 billion deal, marking a major consolidation in the U.S. energy drink market. The agreement, expected to be finalized in the second quarter of 2025, includes a net purchase price of $1.65 billion and $150 million in tax assets.

Alani Nutrition, founded in 2018, has built a reputation as a “female-focused” brand offering functional beverages and snacks tailored to Gen Z and millennial consumers. The Kentucky-based company, previously operated by Congo Brands, produces energy drinks, protein shakes, snacks, and protein powders. The acquisition will transfer ownership from co-founders Katy and Haydn Schneider, as well as Congo Brands’ co-founders Max Clemons and Trey Steiger, to Celsius Holdings.

Celsius believes the deal will create a powerful synergy, forming a “leading better-for-you, functional lifestyle platform.” By integrating Alani Nu’s products, Celsius aims to expand its reach in the functional beverage space and tap into growing demand for zero-sugar alternatives. The company expects the merger to drive approximately $2 billion in sales, leveraging the combined distribution networks, brand awareness, and innovation capabilities of both entities.

John Fieldly, Chairman and CEO of Celsius, highlighted the strategic benefits of the acquisition, stating that it will “broaden the availability of Alani Nu’s functional products” and strengthen the company’s presence in new market segments. The transaction is projected to be accretive to cash earnings per share (EPS) within the first full year of ownership, with an estimated $50 million in cost synergies to be realized over two years post-closing.

Max Clemons of Congo Brands expressed confidence in the deal, emphasizing that Celsius will “unlock key growth opportunities” for Alani Nu, particularly in expanding its distribution and consumer engagement.

The acquisition announcement coincided with Celsius reporting its fourth-quarter and full-year financial results for 2024. The company posted annual revenue of $1.36 billion, reflecting a 3% increase over the prior year. North American sales accounted for $1.28 billion, growing by 1%, while international revenues surged 37% to $74.7 million. Despite the revenue growth, Celsius experienced a decline in profitability, with adjusted EBITDA down 13% to $255.7 million and net profit falling 36% to $145.1 million.

Industry analysts view this acquisition as a strategic move that could help Celsius regain momentum in a highly competitive market. By capitalizing on Alani Nu’s strong brand presence and consumer loyalty, Celsius aims to solidify its position as a leader in the energy and functional beverage sector. The deal also signals an increasing trend of consolidation in the market, as major players look to expand their portfolios to meet shifting consumer preferences.

As the acquisition moves forward, investors and industry watchers will closely monitor how Celsius integrates Alani Nu into its operations and whether the expected synergies materialize. If successful, the merger could serve as a blueprint for future partnerships in the rapidly evolving health and wellness beverage industry.