Celsius Makes $1.8 Billion Bet on Alani Nu Amid Market Fluctuations

NEW YORK, April 4, 2025 — Celsius Holdings Inc. has announced a bold acquisition of Alani Nu, a rapidly rising player in the health-focused beverage market, for $1.8 billion. This decision comes despite the company’s stock dropping 63% from its peak, raising questions about the strategic timing and financial implications of the deal.

As of April 4, 2025, Celsius’ market capitalization stands at $8 billion, with a stock price of $35.54 after a 1.28% decline. Despite recent volatility, including a 27% spike following a previous announcement on February 20, Celsius has seen its stock rise 2,500% over the past five years.

The acquisition, expected to close in the second quarter of 2025, consists of $900 million in debt financing, $375 million in cash, $25 million in earn-out payments, and $500 million in newly issued shares. Analysts note that the purchase price values Alani Nu at under three times last year’s revenue.

Alani Nu has grown rapidly, experiencing a 64% increase in retail sales in 2024, outperforming Celsius, which saw growth of only 22%. This acquisition is seen as a potential way for Celsius to target a new demographic, particularly younger, affluent women who frequently purchase Alani Nu products.

Celsius CEO’s strategic rationale includes expected annual cost synergies of $50 million and the prospect of significant market share in the health and wellness segment of the energy drink market. “This acquisition allows us to diversify our customer base while capitalizing on Alani Nu’s impressive growth trajectory,” the CEO stated.

However, shareholders remain cautious due to Celsius’ recent revenue challenges, reporting only 3% sales growth in 2024, a stark decline from previous years. Critics of the deal question whether the acquisition could signal that Celsius is struggling to generate organic growth, particularly after the company’s market share dropped from a peak of 12.3% to 10.9% last quarter.

Questions linger regarding Alani Nu’s decision to sell, given its strong performance. Industry analysts speculate whether the valuation might be conservative, as Alani Nu could have potentially commanded a higher price if it continued its growth trajectory. Investors are left to wonder if the acquisition was prudent during a tumultuous period for Celsius, which is trading significantly below its historical highs.

Ultimately, the success of this acquisition will hinge on its execution and the market response in the coming months. Celsius stakeholders are advised to monitor developments closely, weighing the potential for growth against the uncertainties that lay ahead.