Celsius Holdings has entered into a definitive agreement to acquire female-focused energy drink brand Alani Nutrition (“Alani Nu”) for US$1.8 billion, including US$150 million in tax assets for a net purchase price of US$1.65 billion, comprising a mix of cash and stock. 

The transaction will combine two growing, scaled brands in the US energy drink category, creating a “better-for-you,” functional lifestyle platform addressing the consumer preference for zero-sugar alternatives.

Alani Nu provides complementary brand positioning and access to attractive female consumer demographics, driving incremental energy drink category growth. The acquisition is expected to provide the opportunity for additional, adjacent category expansion.

Founded in 2018, Alani Nu specializes in functional beverages and wellness products that are positioned as “aspirational yet accessible” for a growing community of Gen Z and millennial consumers.

With the addition of Alani Nu, the combined Celsius platform is expected to drive ~US$2 billion in sales across a differentiated energy portfolio that is firmly aligned with the ongoing consumer shift toward premium, functional beverage options that cater to health & wellness and active lifestyles.

The transaction is expected to enhance Celsius’ position as an innovative leader in the large, growing global energy category, which is projected to grow at a 10% CAGR from 2024 to 2029, with a scaled, “on-trend,” sugar-free platform.

“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. 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,” says Celsius chairman and CEO, John Fieldly.

“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.”

Boosting topline growth

Celsius expects the acquisition of Alani Nu to add significant topline scale and growth and is forecasted to be accretive to cash EPS in the first full year of ownership. It expects to hit US$50 million of run-rate cost synergies over two years post-close, contributing to strong pro-forma profitability and significant cash flow generation.

Retail data firm Circana reported a 78% year-over-year increase in Alani Nu retail sales for the four weeks ending January 26, 2025. This growth reflects sales in the US convenience market as measured by MULO+, Circana’s expanded dataset that captures a broader view of retail activity.

Alani Nu’s dollar share for the same last four-week period was 4.8%, an increase of ~200 basis points from the prior-year period.

“When we founded Alani Nu in 2018, our goal was simple: to create products that made women feel their absolute best — inside and out. Watching this brand grow into a movement of strong, confident women has been the honor of a lifetime,” says Alani Nu co-founder Katy Schneider.

“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. I’m incredibly proud of everything we’ve built and beyond grateful for this amazing community who made it all possible. I’m thrilled for Alani to reach new heights.”

Max Clemons, co-founder and co-CEO of Congo Brands, which operates Alani Nu, adds: “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.”

Upon closing, Alani Nu will operate within Celsius, and key members of the Congo Brands leadership team have agreed to continue as advisors to Celsius.

UBS Investment Bank acted as Celsius’ exclusive financial advisor and is providing a committed financing package comprising a US$900 million Term Loan B and a US$100 million Revolving Credit Facility, and Freshfields US is serving as Celsius’ legal counsel.

J.P. Morgan Securities is serving as Alani Nu’s financial advisor and Greenberg Traurig is serving as legal counsel.