Celsius Holdings (NASDAQ:CELH) shares surged 29% in Friday’s session, driven by a major announcement on Thursday afternoon. The company revealed plans to acquire wellness drinks brand Alani Nu for a whopping $1.8 billion, with the deal expected to close by 2Q25.
To fund the acquisition, Celsius will draw from a mix of cash and stock. A $1.275 billion portion of the purchase price will be financed through new debt, while $375 million will come from existing cash reserves. This leaves the company with $515 million in cash on its balance sheet, resulting in a net leverage ratio of just 1.0x.
Needham analyst Gerald Pascarelli praised the deal, stating that it makes strategic sense as Alani Nu is one of the fastest-growing energy brands with significant distribution whitespace. The combined company will now capture a low-to-mid-teens share of the U.S. energy market, surpassing a previously elusive double-digit barrier.
Pascarelli also noted that the acquisition will significantly expand Celsius’s reach among female consumers, a key competitive advantage for the brand. The deal has already led to an increase in shares, with the stock now closing in on Pascarelli’s $38 price target, implying a 15% upside.
Eight analysts, including Pascarelli, are bullish on the stock, while five have holds and one has a sell rating. The overall consensus is Moderate Buy, with average price targets suggesting 9% returns over the next 12 months.
Source: https://www.tipranks.com/news/keep-on-buying-says-needham-about-celsius-stock