Celsius Holdings Inc., based in Boca Raton, Florida, has officially announced a definitive agreement to acquire Alani Nutrition LLC, commonly known as Alani Nu, for a total consideration of $1.8 billion. This figure includes $150 million in tax assets, resulting in a net purchase price of $1.65 billion, which will be settled through a combination of cash and stock.

This strategic acquisition aims to merge two rapidly growing and established brands within the U.S. energy drink sector. The combined entity will create a leading platform focused on better-for-you functional lifestyle products, positioning itself to leverage the increasing consumer demand for zero-sugar alternatives.

Founded in 2018, Alani Nu has quickly emerged as a prominent brand, particularly among female consumers. The company specializes in functional beverages and wellness products that are both aspirational and accessible, appealing to an expanding demographic of Gen Z and millennial consumers. The acquisition is expected to enhance Celsius’s brand positioning and provide new access to a valuable female consumer base, ultimately driving incremental growth within the energy drink category.

John Fieldly, Chairman and CEO of Celsius, expressed his enthusiasm regarding the acquisition: “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. 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.”

Katy Schneider, co-founder of Alani Nu, shared her perspective on the acquisition, stating, “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. 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, added, “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.”

Recent data indicates a significant rise in Alani Nu’s retail sales across the U.S. Multi-Outlet (MULO) Plus with Convenience channels, showcasing a remarkable 78% year-over-year increase as reported by Circana for the four-week period ending January 26. Furthermore, Alani Nu’s dollar share for the same period reached 4.8%, representing a substantial 200 basis point growth from the previous year.

Upon completion of the acquisition, Alani Nu will operate as part of Celsius, with key members of the Congo Brands leadership team remaining on board as advisers to ensure sustained business momentum.

The integration of Alani Nu into Celsius is projected to drive combined sales to reach $2 billion across a diversified energy portfolio. This alignment reflects a broader trend toward premium, functional beverage options that cater to health-conscious consumers and active lifestyles.

This acquisition brings together two growing energy brands that are well-positioned to benefit from favorable market trends. Analysts anticipate that the global energy drink market will experience a compound annual growth rate (CAGR) of 10% from 2024 to 2029, highlighting the increasing consumer preference for sugar-free options.

The merger not only enhances brand positioning but also opens up new consumer demographics, driving incremental growth in the energy drink sector. Alani Nu will grant Celsius expanded access to a rapidly growing audience focused on wellness, further boosting category growth.

Leveraging their combined strengths and capabilities, both Celsius and Alani Nu are well-equipped to navigate the next phase of growth. The broadened platform is expected to enhance the company’s resources for ongoing investments, facilitate distribution gains, and foster brand innovation and awareness. This strategic alignment will propel both brands towards further global expansion.

Financial projections indicate that the acquisition will enhance Celsius’s topline growth metrics and is expected to be accretive to cash earnings per share (EPS) in the first year. Additionally, the company anticipates realizing $50 million in run-rate cost synergies over a two-year period following the close, contributing to strong pro forma profitability and significant cash flow generation.

The agreement has been approved by the Celsius Board of Directors, although it remains subject to customary closing conditions, including regulatory approvals. The transaction is anticipated to finalize in the second quarter of 2025.