Celsius Acquires Alani Nu for $1.8B, Fair Value Drops to $25
Mar 6, 2025
Celsius reported much improved but still muted results in Q4, with revenue falling 4% year-over-year. It closed the year with 3% growth, most of that due to inventory balancing at Pepsi, but a meaningful portion also due to a general downswing in the energy drink market for the year (many competitors also had poor years). The big news was the acquisition of Alani Nu, an up-and-coming energy brand portfolio especially popular with young women. The purchase price looks reasonable to me at 3x sales, and Alani Nu has a very similar margin profile to existing Celsius. But it is a big swallow at $1.8 billion, including $900 million in new debt and $500 million in dilutive shares. As with most big deals, it hurts the fair value of the company in the short term, and has to perform well to be value-additive in the long term. I've cut the fair value for Celsius to $25 for now. We will see what results look like after the deal closes in Q2.
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