Celsius surges on deal to buy wellness drinks brand Alani Nutrition

Celsius Holdings

21/02/2025 15:00

(Updates)
    ** Shares of energy drink maker Celsius Holdings  CELH.O 
surge 28% to $32.69 in early trade
        ** Stock set for its best day since November 2020 if
gains hold
  
    ** Celsius to buy health and wellness drinks brand Alani
Nutrition in $1.8 billion deal
    ** Wedbush analyst Gerald Pascarelli says, "This deal makes
good sense as Alani is one of the fastest growing brands in
energy (drinks) with meaningful distribution whitespace"
    ** Celsius also posts better-than-expected Q4 revenue and
adjusted EPS
    ** But TD Cowen analyst Robert Moskow believes that if Alani
cannibalizes Celsius' sales, the combined entity will grow much
slower; says consumer loyalty for a six-year-old brand like
Alani may not be as strong as Celcius thinks
    ** Up to last close, stock had fallen 3% YTD; it slid 52% in
2024

 (Reporting by Nikhil Sharma and Neil J Kanatt in Bengaluru)
 ((Nikhil.Sharma@thomsonreuters.com;))