Alani Nutrition sold for $1.8bn

May 2025 | DEALFRONT | MERGERS & ACQUISITIONS

Financier Worldwide Magazine

May 2025 Issue

Celsius Holdings has agreed to acquire health and wellness drinks brand Alani Nutrition for a total consideration of $1.8bn, including $150m in tax assets.

The deal, which will be financed through a combination of cash and stock, is expected to close in the second quarter of 2025, subject to customary closing conditions, including regulatory approvals. The purchase price consideration is comprised of $1.275bn in cash, a $25m earn out, and $500m, or approximately 22.5 million shares, of newly issued restricted shares of Celsius Holdings common stock, representing approximately 8.7 percent pro-forma ownership. The cash consideration consists of fully committed debt financing of $900m and approximately $375m of cash on hand. The company’s liquidity position is expected to remain robust with pro-forma net leverage of approximately 1.0x5 and ample cash on the balance sheet.

The net purchase price of $1.65bn translates to a valuation of less than three times Alani Nutrition’s projected 2024 revenue of $595m and approximately 12 times its fully synergised earnings before interest, taxes, depreciation and amortisation (EBITDA) of $137m. The transaction is expected to be accretive to cash earnings per share in the first full year post-acquisition, highlighting its financial viability.

Alani Nutrition is a female-focused brand that delivers functional beverages and wellness products. The company was founded in 2018 and will be acquired from its co-founders, Katy Schneider and Haydn Schneider, and its operator, Congo Brands.

“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,” said John Fieldly, chairman and chief executive of Celsius. “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 at more moments throughout their lives.”

“Watching this brand grow into a movement of strong, confident women has been the honor of a lifetime,” said Katy Schneider, co-founder of Alani Nu. “As Alani Nu enters this next chapter with Celsius, I have full confidence that they are the best partner to enhance Alani Nu’s growth and success while staying true to what makes it so special.”

“We believe Celsius can unlock key growth opportunities for Alani Nu and are excited to partner with John and the Celsius team as they continue to disrupt and grow the functional beverage space,” said Max Clemons, co-founder and co-chief executive of Congo Brands, which operates Alani Nutrition.

Upon completion of the transaction, Alani Nutrition will operate under the Celsius umbrella, with key leadership from Alani Nutrition remaining involved to ensure a smooth transition and sustained momentum. This integration is expected to enhance Celsius’s portfolio, allowing for greater innovation and brand awareness while addressing the increasing demand for functional beverages.

In a statement announcing the deal, Celsius said: “Both brands 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.”

Celsius sees Alani Nutrition complementing its own product line and creating an even more comprehensive health and wellness lifestyle brand. Alani Nutrition had risen to number four in US market share of the energy drink market, behind Celsius, Monster Beverage and Red Bull, and Celsius apparently believed that making a deal with Alani Nutrition now was in its best interest to preserve its own competitive position. Alani Nutrition’s brand focus on community, empowerment and wellness for young women also expands Celsius’ target audience beyond its historical emphasis on athletes and fitness enthusiasts.

Richard Summerfield