The energy drink market just got a little smaller, as Celsius Holdings announced today it has agreed to acquire competitor Alani Nu for $1.8 billion, comprising a mix of cash and stock. The transaction includes a potential $25 million earn-out based on 2025 performance.
The deal comes roughly a year-and-a-half after Reuters reported the performance energy drink brand was exploring a full or partial sale of the company at a valuation of over $3 billion, citing four people “familiar with the matter.”
“We have deep respect for the strong community of supporters and fans Alani Nu has developed and the authentic brand and partnerships they have formed. Together, we expect to broaden the availability of Alani Nu’s functional products to help more people achieve their wellness goals,” said John Fieldly, chairman and CEO of Celsius, in a statement.
Upon closing, Alani Nu will operate within Celsius, and key members of Congo Brands’ leadership team will continue as advisors to Celsius to “ensure continued business momentum,” per the announcement. The brand was previously operated by Congo Brands, which also runs Logan Paul’s PRIME.
Founded in 2018, Alani Nu has been among the fastest-growing brands in the better-for-you performance energy set and over-indexes with women. Retail sales of the brand in total MULO Plus with convenience climbed 78% year-over-year in the four-week period ending January 26, according to Circana.
As well, Alani Nu’s dollar share for the same four-week period was 4.8%, an increase of nearly 200 basis points from the prior year period.
With the addition of Alani Nu, the combined Celsius platform is expected to drive approximately $2 billion in sales across a portfolio that is aligned with the continued consumer shift toward premium, functional beverages catering to active lifestyles. The transaction is also anticipated to be accretive to cash EPS in the first full year of ownership.
The news comes after Celsius posted a 33% drop in North America during Q3, partially driven by previously announced inventory cuts by distribution partner PepsiCo as a result of supply chain optimization. However, Fieldly expressed confidence that the conditions have “largely stabilized.”
“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-CEO of Congo Brands, in a statement.
This is a breaking news story that will be updated.