Celsius Holdings has agreed to buy health and wellness drinks brand Alani Nutrition in a $1.8 billion deal, bolstering its portfolio in the growing energy drink market. The acquisition will add functional beverages and wellness products to Celsius’ existing offerings.
Alani Nutrition, founded in 2018 by co-founders Katy Schneider and Haydn Schneider, will be acquired from its founders and operator Congo Brands. The deal is part of a trend in the sector as companies seek to capitalize on the increasing popularity of energy drinks among younger generations.
PepsiCo has also invested in Celsius, paying $550 million for an 8.5% stake in 2022. Meanwhile, Keurig Dr Pepper acquired a 60% stake in Ghost, an energy drink maker, for $990 million with plans to purchase the remaining stake in 2028.
The combined Celsius platform is expected to generate around $2 billion in annual sales. For fiscal 2024, Celsius reported $1.36 billion in revenue, a 3% increase from the previous year.
Needham analyst Gerald Pascarelli praised the deal, saying it makes strategic sense for Alani Nutrition’s growth and distribution potential. The acquisition will give Celsius a low-to-mid-teens share of the US energy drink market.
Under the terms of the deal, Celsius will pay $1.65 billion in net purchase price, with $150 million in tax assets included. Key members of Congo Brands’ leadership team will continue as advisors to the company after the acquisition closes.
Source: https://finance.yahoo.com/news/celsius-buy-rival-energy-drink-212700542.html