Celsius Holdings (NASDAQ:CELH) just made a bold move, sending its stock soaring 29.5% at 11.26am, after announcing a $1.65 billion acquisition of Alani Nu. The dealstructured as a mix of cash and stockpositions Celsius as a dominant force in the functional beverage space, especially among female consumers, where Alani Nu has built strong brand loyalty. CEO John Fieldly sees this as a game-changer, leveraging Celsius' distribution muscle to accelerate Alani Nu's growth while strengthening Celsius' own foothold in the surging energy drink market.

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On the financial front, Celsius' Q4 results were a mixed bag. Revenue landed at $332.2 million, dipping slightly from last year due to higher allowances and incentive programs, but international sales were a bright spot, climbing 39%. Gross margins improved to 50.2%, thanks to lower freight and material costs, but net income took a hit, dropping to -$18.9 millionlargely due to legal expenses and restructuring. Adjusted EPS of $0.14 came in just below expectations, but the market shrugged it off, focusing on Celsius' expanding market share and long-term growth prospects.

Investors are betting that this acquisition will supercharge Celsius' momentum. The company has already gained serious traction, with retail sales jumping 22% in 2024 and category share hitting 11.8%. Now, with the Alani Nu deal expected to close in Q2 2025, Celsius is poised to widen its competitive edge at a time when demand for functional beverages is exploding. If management executes well, this could be the start of another major growth chapter for the brand.