Investing.com -- Shares of Celsius Holdings , Inc. (NASDAQ: CELH ) witnessed an 18% climb after-hours Thursday following the announcement of its definitive agreement to acquire Alani Nutrition LLC for $1.8 billion, a strategic move that combines two fast-growing brands in the U.S. energy drink market. The transaction, which includes $150 million in tax assets for a net purchase price of $1.65 billion, is expected to close in the second quarter of 2025 and aims to create a leading platform in the better-for-you, functional lifestyle space.

The acquisition of Alani Nu, known for its female-focused functional beverages and wellness products, is anticipated to complement Celsius's brand positioning and access to a key demographic that is contributing to energy drink category growth. Retail sales of Alani Nu have increased by 78% YoY, a testament to its rapidly expanding market presence. Upon completion, Alani Nu will operate within Celsius, with Congo Brands leadership continuing as advisors to ensure sustained business momentum.

John Fieldly, Chairman and CEO of Celsius, highlighted the significance of the acquisition, stating that it marks a defining moment for the company in the functional lifestyle products movement. He expressed enthusiasm for the expansion opportunities and the ability to reach more consumers with Alani Nu's product offerings.

The financial details of the deal reveal a mix of cash and stock, with Celsius providing a $1,275 million cash consideration and $500 million in newly issued restricted shares. The company's strong liquidity position is expected to remain intact, with pro-forma net leverage of approximately 1.0x.

In addition to the acquisition news, Celsius reported fourth-quarter earnings per share (EPS) of $0.14, surpassing analyst expectations by $0.02. However, revenue for the quarter was slightly below the consensus estimate at $332.2 million. Despite this, investor sentiment remains positive as the company prepares to integrate Alani Nu into its portfolio and capitalize on synergies expected to be accretive to cash EPS in the first full year post-acquisition.

UBS Investment Bank and Freshfields US LLP are advising Celsius on the transaction, with J.P. Morgan Securities LLC and Greenberg Traurig, P.A. advising Alani Nu. The acquisition is subject to standard closing conditions, including regulatory approvals.

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