Celsius Holdings acquires Alani Nutrition for $1.8 billion

BOCA RATON, Fla. - Celsius Holdings, Inc. (NASDAQ:CELH), a functional beverage company with a market capitalization of $8.38 billion, has completed its acquisition of Alani Nutrition LLC, also known as Alani Nu, for $1.8 billion, netting $1.65 billion after accounting for $150 million in tax assets. The transaction, which includes a combination of cash and stock, unites the Celsius® and Alani Nu® brands to form a robust functional beverage portfolio in a market increasingly driven by health-conscious consumers preferring zero-sugar options. According to InvestingPro data, Celsius maintains a strong balance sheet with more cash than debt, positioning it well for this strategic acquisition.

John Fieldly, the Chairman and CEO of Celsius, emphasized the strategic significance of the acquisition, stating it will enhance the company’s growth in the energy drink sector and appeal to new customers seeking healthier beverage choices. The company’s strong financial health is reflected in its "GREAT" rating from InvestingPro, with a current ratio of 3.62 and annual revenue of $1.36 billion. He acknowledged Alani Nu’s strong product portfolio and committed customer base, expressing confidence in the continued innovation and expansion of the brand’s offerings.

Alani Nu, known for its health and wellness lifestyle products, will operate within the Celsius structure. Key leadership from Alani Nu will stay on as advisors to ensure ongoing business momentum. Alani Nu co-founder Max Clemons expressed gratitude to the brand’s employees and partners and shared his enthusiasm for the integration into the Celsius family, looking forward to reaching a broader audience and continuing to create products that align with today’s wellness lifestyles.

Celsius Holdings, with its flagship energy drink brand CELSIUS®, hydration brand CELSIUS HYDRATION™, and now Alani Nu®, positions itself as a leader in the functional beverage space, which caters to health and fitness enthusiasts.

The press release also contains forward-looking statements regarding the company’s future plans and operations following the acquisition. These statements include expectations of financial performance, market opportunities, and the anticipated benefits of the acquisition. However, the company cautions that actual results may differ due to various factors and does not undertake any obligation to update forward-looking information except as required by law.

This news article is based on a press release statement from Celsius Holdings, Inc. Analysts expect continued sales growth for the company, though InvestingPro analysis indicates the stock is currently trading at high valuation multiples. For deeper insights into Celsius Holdings’ financial health, growth prospects, and 18 additional ProTips, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.

In other recent news, Celsius Holdings announced its anticipated acquisition of Alani Nutrition, with the deal expected to close in April 2025. This acquisition is seen as a strategic move to strengthen Celsius’s position in the women’s energy drink segment in the United States. Truist Securities upgraded Celsius Holdings from Hold to Buy, raising the 12-month price target from $35 to $45, citing the long-term benefits of the Alani Nu acquisition as a key factor. Meanwhile, Morgan Stanley maintained its Equalweight rating on Celsius Holdings with a consistent price target of $42, noting a slight improvement in recent sales data for the Celsius brand.

Additionally, Celsius Holdings has appointed Eric Hanson as its new President and Chief Operating Officer. Hanson’s extensive experience, including his previous role at PepsiCo, is expected to contribute to Celsius’s growth strategy and integration of acquisitions. The company has not yet released a public statement regarding the upgraded ratings and revised price targets. These developments reflect Celsius’s ongoing efforts to expand its market presence and capitalize on growth opportunities within the functional beverages category.

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