USA – Celsius Holdings, a calorie-burning fitness beverages company, has announced that it has entered into an agreement to sell stake of the company to two funds for US$22m.
The deal, with an Asian private equity firm and a global institutional investor, is expected to close on or around 25 August 2020.
In the placement transaction, Celsius Holdings will sell a stake in the company and various affiliates will do likewise, reports Foodbev.
Celsius Holdings says that the affiliate sales will represent a minority divestiture from its long-term strategic partners to facilitate this investment.
“The injection of funds will allow us to eliminate our outstanding bonds incurred in connection with our October 2019 acquisition of Func Food Group Oyj, which bonds are due in October 2020, and provide working capital enabling Celsius to maximise the significant growth opportunities in both domestic and global markets,” said John Fieldly, Celsius Holdings president and CEO.
The transaction will be effected pursuant to an exemption from registration afforded by Regulation S under the Securities Act of 1933.
“Horizons Ventures and affiliated partners seek to invest in companies with exceptional management teams which are positioned to disrupt categories and Celsius has already established the company as a leader in the rapidly emerging functional energy beverage category,” Tony Lau of Horizons Ventures, co-chairman of Celsius Holdings, said.
“Consumers are striving for healthier drink options which is a common trend on a global scale, and we are confident that Celsius is well positioned as an energy drink that not only tastes good but is a true differentiator in the category, a unique and attractive offering which any consumer around the world can relate and benefit from.”
Celsius also announced its expansion into gasoline and convenience store chain, Speedway.
The initial rollout, starting at the beginning of the fourth quarter of 2020, will reportedly introduce two SKUs to 2,700 stores.
“We have always believed that Celsius was a winner with the potential to become a global brand. We are thrilled to welcome our new investors and together along with our existing management team, we will continue our growth and maximize our potential,” said William H. Milmoe, President of CDS Holdings & Co-Chair of Celsius Holdings
“These two prestigious funds looking to invest in Celsius only reinforces our belief that this brand is ready for continued growth and expansion.”
Earlier this year, Celsius expanded its portfolio of functional beverages with a new jackfruit flavour, alongside updated packaging, for its Heat range.
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