USA – Celsius Holdings, manufacturer of global fitness drink brand Celsius, has agreed to acquire functional food and beverages company Func Food Group Oyj for US$24.6 million.

Func Food is a Nordic wellness company that markets and distributes beverages, protein bars, supplements and superfoods under the brands, FAST Sports Nutrition, CocoVi and FitFarm.

The US$24.6 million acquisition deal is comprised of approximately US$15.1 million in cash and the assumption of US$9.5 million of outstanding debt – which Celsius intends to fund with proceeds from subsequent equity offering.

The purchase of Func Food will allow Celsius to gain stronger access to distributors and customers in the European nutrition markets and expand its portfolio of products.

Func Food represents a comprehensive portfolio of well-being products which promote active and, healthy lifestyles by investing in high-quality ingredients and best-in-class food and beverage expertise.

The combined business will take advantage of Func Food’s multi-market supply chain to drive expansion across Europe, while plans to add Func Food’s FAST Sports Nutrition line to the Celsius line will provide additional revenue streams.

John Fieldly, president and chief executive officer of Celsius Holdings said: “According to industry statistics, more than half of all European consumers plan to improve their health through food and beverages.

“Adding Func Food into the Celsius family will allow us to capitalize on these areas of opportunity and benefit from the growing sports nutrition and energy drink markets in Europe.”

Chief executive officer of Func Food Group Oyj, Robin Lybeck said: “The acquisition of Fund Food by Celsius is a very welcome development to our solid long-term partnership.

“Func Food has built Celsius to become a leading fitness beverage in the Nordic markets, with exceptionally high per capita-consumption in Sweden and we are looking forward to expanding the footprint of this great brand as we move ahead.”

Celsius currently offers four beverage lines that promote active and healthy lifestyles, and in consideration of its recent acquisition plans to expand its product range alongside the growing market potential.

The transaction is expected to close in October 2019, subject to successful completion of the follow-on offering by Celsius, required legal compliance by Func Food under Swedish law and other customary closing conditions.