Celsius Holdings has announced its plan to acquire health and wellness drinks and snacks manufacturer Alani Nutrition (Alani Nu) in a deal valued at $1.8 billion.
Based in Kentucky, Alani Nu will be acquired from its co-founders, Katy and Haydn Schneider, along with Congo Brands’ co-founders, Max Clemons and Trey Steiger.
Expected to be finalized in the second quarter of 2025, the acquisition comprises a net purchase price of $1.65 billion and an additional $150 million in tax assets.
Founded in 2018, Alani Nu is distinguished as a “female-focused” company producing functional beverages and snacks tailored to Gen Z and millennial consumers.
Previously operated by Congo Brands, Alani Nu’s product lineup includes energy drinks, protein shakes, snacks, and protein powders.
Celsius asserts that this strategic acquisition will forge a “leading better-for-you, functional lifestyle platform,” addressing the rising consumer demand for zero-sugar alternatives.
Furthermore, the company stressed that “both brands [Celsius and Alani Nu] will be well positioned under the Celsius platform to drive continued distribution gains, access consumers in growing adjacencies, drive innovation and brand awareness, achieve incremental category growth, and propel further global expansion.”
The Florida-based energy drink manufacturer anticipates that integrating Alani Nu will generate approximately $2 billion in sales.
In comments made by Celsius chairman and CEO John Fieldly, he stated the company is committed to “broadening the availability of Alani Nu’s functional products.”
Moreover, the acquisition is projected to be accretive to cash EPS in the first year of ownership. The company expects to realize $50 million in run-rate cost synergies within two years following the transaction’s completion.
Clemons from Congo Brands expressed confidence that Celsius would “unlock key growth opportunities” for Alani Nu.
In conjunction with this acquisition announcement, Celsius also released its fourth-quarter and full-year financial results for the 2024 fiscal year.
For the year, Celsius reported revenues of $1.36 billion, reflecting a 3% increase compared to the previous 12 months.
Its largest North American market reported sales of $1.28 billion, which rose by 1%. Yet, international revenues experienced impressive growth, soaring 37% to reach $74.7 million.
Nevertheless, group profits experienced a downward trend, with adjusted EBITDA declining 13% to $255.7 million. Concurrently, net profit fell by 36% to $145.1 million.
