Mentioned:
CELH +1.37% COST -0.05%
Two of the biggest players in energy drinks are coming together.
What’s happening:
- Celsius Holdings (NASDAQ: CELH) has announced they will acquire energy drink company Alani Nu for $1.8B USD
By the numbers:
- Celsius Holdings will pay $1.27B USD in cash and $500M USD in common shares as part of the new acquisition
- $25M USD can also be earned by Alani Nu through various milestones over the next year
Why it matters:
- Celsius Holdings is one of the fastest growing publicly traded energy drink companies and the new deal with Alani Nu represents the single largest acquisition they’ve ever made since the company was formed
Going deeper:
- Alani Nu is one of the most popular female focused energy drink brands in the world and has established a deep distribution network with retail giants including Costco (NASDAQ: COST), Walmart (NYSE: WMT), Target, GNC, Kroger and others
- Celsius Holdings has also been aggressively expanding their operational infrastructure, previously acquiring American co-packing company Big Beverages Contract Manufacturing
