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Celsius Holdings (CELH.O) has announced its acquisition of Alani Nutrition, a growing energy drink and wellness brand, in a deal worth $1.8 billion.

The transaction, which includes a mix of cash and stock, is designed to boost Celsius' presence in the US energy drink market and tap into the rising demand for healthier, zero-sugar beverages.

The deal, revealed on Thursday, includes a net purchase price of $1.65 billion and $150 million in tax assets, Reuters said.

Alani Nutrition, founded in 2018, is known for its female-focused, functional beverages and wellness products.

This acquisition will combine two of the fastest-growing brands in the energy drink sector, creating a stronger presence in the "better-for-you" product category.

John Fieldly, Chairman and CEO of Celsius, expressed his excitement about the acquisition.

He stated, "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."

Fieldly also highlighted the strong fanbase and partnerships Alani Nutrition has cultivated, noting that the deal would help expand the availability of Alani Nu's products and further promote wellness with functional options.

Celsius Acquires Alani Nutrition for $1.8 Billion to Expand Healthier Beverage Line

Once the acquisition is finalized, Alani Nutrition will continue to operate within Celsius. Additionally, key leadership members from Congo Brands, the company behind Alani Nutrition, will remain as advisors to ensure continued success.

Alani Nu's co-founders, Katy and Haydn Schneider, along with Congo Brands' Max Clemons and Trey Steiger, will receive the $1.8 billion in a combination of cash and stock.

A potential $25 million earn-out is also included, based on the brand's performance in 2025.

According to MarketInsider, the transaction includes a fully committed debt financing package of $900 million and about $375 million of cash on hand.

Celsius has also issued $500 million worth of newly restricted shares, giving the sellers around 8.7% pro-forma ownership in Celsius.

Despite this significant financial move, Celsius is expected to maintain a strong liquidity position, with a pro-forma net leverage ratio of about 1.0x.

The deal has been approved by Celsius' Board of Directors and is expected to close in the second quarter of 2025, pending regulatory approval.

With the acquisition of Alani Nutrition, Celsius is well-positioned to continue its growth in the energy drink industry, targeting a broader audience seeking healthier beverage options.