Celsius Holdings to Acquire Alani Nutrition for $1.8 Billion

Celsius Alani Acquisition

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News Summary

Celsius Holdings, Inc. has announced plans to acquire Alani Nutrition LLC for $1.8 billion. The deal includes $1.65 billion in cash and stock, plus $150 million in tax assets. This strategic move aims to expand Celsius’s presence in the wellness beverage market, appealing particularly to younger consumers. Alani will maintain its brand identity under Celsius, and the acquisition is expected to close by Q2 2025, promising a bright future for both companies in the health-oriented beverage sector.

Big Plans for Wellness Beverages: Celsius Holdings to Acquire Alani Nutrition

In an exciting move that’s sending waves across the beverage industry, Celsius Holdings, Inc., based in sunny South Florida, has announced they are set to purchase Alani Nutrition LLC for a whopping $1.8 billion. This strategic acquisition, which is generating a lot of buzz, includes a net purchase price of $1.65 billion plus another $150 million in tax assets. Talk about a major investment!

A Cash and Stock Combo

The financing for this deal will come from a mix of cash and stock, showcasing Celsius’s serious commitment to expanding their portfolio in the wellness beverage segment. This decision aligns perfectly with the current trend toward healthier drinking options among consumers, particularly among younger generations.

Targeting Younger Consumers

Founded just in 2018, Alani Nutrition has quickly carved out a niche for itself by focusing on Gen Z and millennial consumers with a brand that emphasizes female-focused lifestyle and wellness beverages. As a subsidiary of Congo Brands, Alani Nu has been shaking things up in the market.

In fact, recent data shows that Alani Nu saw an impressive 78% increase in retail sales across U.S. stores for the four-week period ending January 26. This trend isn’t just a fluke; it underscores the ever-growing demand for wellness-oriented products, especially those that resonate with younger, health-conscious audiences.

Keeping the Alani Name

Good news for Alani fans! Once the acquisition is finalized, Alani Nu will retain its well-loved brand name under the Celsius umbrella. Additionally, key leadership from Congo Brands will continue to contribute as advisors, ensuring that the brand stays true to its roots while scaling new heights.

Celsius’s Strong Performance

For reference, Celsius reported $1.36 billion in revenue last year, demonstrating an impressive 22% increase in retail sales. While they experienced a slight dip in fourth-quarter revenue for 2024—falling to $332.2 million from $347.4 million—the company still celebrated a net income of $145.1 million. Clearly, their recipe for success is working even amidst challenges.

Financial Details of the Acquisition

This acquisition deal is expected to be accretive to cash earnings per share in the first full year after the purchase. The financial metrics are looking favorable, with the transaction valued at less than 3 times Alani Nu’s estimated net revenue of $595 million for 2024. It’s anticipated that the combined efforts will result in around $2 billion in sales.

Breaking down the cash consideration, Celsius is preparing $1.275 billion in cash, alongside a $25 million earn-out based on Alani’s performance in 2025, and $500 million in newly issued restricted Celsius shares. Quite the financial puzzle!

A Bright Future Ahead

This acquisition is more than just a business transaction; it aims to create a broader platform for enhanced consumer access to better-for-you functional lifestyle products. With growing demands for health-centric options, both companies are poised to be strong players in the wellness beverage landscape.

As the deal works its way through regulatory approvals and is expected to close by the second quarter of 2025, anticipations are high. With John Fieldly at the helm of Celsius and the original mission of Alani Nutrition intact, it’s set to be an exhilarating ride ahead.