Energy drink maker Alani Nu explores options including sale

Nu Skin Enterprises

18/07/2023 17:04

By Abigail Summerville and Anirban Sen
       NEW YORK, July 18 (Reuters) - Alani Nu, the energy
drinks and snack maker founded by personal trainer and social
media influencer Katy Hearn, is exploring options that include a
full or partial sale of the company at a valuation of more than
$3 billion, according to four people familiar with the matter.
    The company is working with JPMorgan Chase & Co  JPM.N  as
it studies its options, the sources said. With the help of
Hearn's social media following, the brand has grown rapidly
since its launch in 2018 and now generates around $100 million
of annual earnings before interest, taxes, depreciation and
amortization, the sources added. 
    Congo Brands, a holding company owned by entrepreneurs Trey
Steiger and Max Clemons, owns a significant stake in the
company. Hearn's husband Haydn Schneider also owns a stake in
Alani Nu.
    The sources cautioned that no deal is certain and asked not
to be identified because the matter is confidential. Alani Nu
and Congo Brands did not respond to requests for comment.
JPMorgan declined to comment.
    Alani Nu's deliberations come as large beverage companies
turn to dealmaking to spruce up their portfolios with energy
drink brands popular with millennials. 
    Last year, PepsiCo  PEP.O  paid $550 million for an 8.5%
stake in energy drink maker Celsius Holdings Inc, while Keurig
Dr Pepper Inc  KDP.O  acquired a 30% stake in Nutrabolt, maker
of energy drink brand C4 Energy, for $863 million. 
    Following an investment in 2018, Coca-Cola Consolidated Inc
 COKE.O  bought the 85% stake of sports drink BODYARMOR it did
not already own for $5.6 billion in 2021. It also paid $2.2
billion for a 16.7% stake in Monster Beverage Corp  MNST.O  in
2015. 
    Alani Nu sells its products online and at Target Corp
 TGT.N , Walmart Inc  WMT.N  and other retailers. Earlier this
month, the Louisville, Kentucky-based company launched a
limited-edition energy drink called 'Kimade' with celebrity Kim
Kardashian. 
    Congo Brands owns two more energy drink companies - 3D
Energy and Prime, backed by wrestlers Logan Paul and KSI.

 (Reporting by Abigail Summerville and Anirban Sen in New York,
editing by Deepa Babington)
 ((abigail.summerville@thomsonreuters.com;))