Celsius Holdings acquires Alani Nutrition in US$1.8B deal to expand functional beverage portfolio 

USA – Celsius Holdings has announced its acquisition of Alani Nutrition for a total consideration of US$1.8 billion, including US$150 million in tax assets.  

This strategic move is set to reshape the functional energy drink market, capitalizing on the growing demand for healthier, low-sugar beverage alternatives. 

The net purchase price of US$1.65 billion represents a valuation of less than three times Alani Nu’s projected 2024 revenue of US$595 million and approximately 12 times its fully synergized EBITDA of US$137 million.  

The transaction is expected to be accretive to cash earnings per share in the first full year, underscoring its financial viability. 

Founded in 2018, Alani Nu has rapidly carved out a niche in the wellness-focused beverage market, appealing primarily to Gen Z and millennial consumers.  

The brand is known for its range of functional drinks and wellness products, catering especially to female demographics with low-calorie, aspirational beverages. 

With the global energy drink market projected to grow at a compound annual growth rate (CAGR) of 10 percent from 2024 to 2029, the acquisition strengthens Celsius’s presence in the better-for-you lifestyle category.  

Celsius plans to leverage Alani Nu’s strong brand loyalty and market presence to drive further growth in the energy drink segment. Retail sales for Alani Nu surged by 78 percent year-over-year in the latest reporting period, reflecting its strong market traction.  

With Celsius’s broader distribution network, the brand is expected to experience further expansion and increased consumer reach. 

Following the completion of the transaction, Alani Nu will operate under the Celsius umbrella, with key leadership remaining involved to ensure a smooth transition and continued growth.  

The integration is expected to enhance Celsius’s product portfolio, enabling greater innovation and brand awareness to meet the rising demand for functional beverages. 

Celsius CEO John Fieldly said: “Celsius is at a defining moment in the better-for-you, functional lifestyle products movement, and we are thrilled to welcome Alani Nu to the Celsius family.”  

He added, “Together, we expect to broaden the availability of Alani Nu’s functional products to help more people achieve their wellness goals with great-tasting, functional product options.” 

The deal is structured with a mix of cash and stock, including a US$25 million earn-out contingent on Alani Nu’s 2025 performance.  

Celsius plans to finance the cash portion through debt financing and existing cash reserves, maintaining a pro forma net leverage ratio of approximately 1.0x. 

Celsius reported a 3 percent increase in revenue to US$1.36 billion in 2024, attributed to long-term share gains and strong retail sales growth.  

The company’s retail sales rose by 22 percent year-over-year, while its market share increased by 160 basis points to 11.8 percent in 2024. 

CFO Jarrod Langhans reaffirmed, “We are pleased that our strategic initiatives are driving long-term share gains and strong retail sales growth. We believe our capital allocation strategy is fully aligned with our vision to be a high-growth leader and deliver the greatest value to our consumers and shareholders.” 

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