BOCA RATON, Fla.–(BUSINESS WIRE)–Celsius Holdings, Inc. (Nasdaq: CELH), maker of CELSIUS®, the premium lifestyle energy drink formulated to help individuals LIVE FIT™, today announced that it is boosting its innovation and production capabilities with the acquisition of Big Beverages Contract Manufacturing, L.L.C. for $75 million. The transaction was completed using cash on hand and closed on Nov. 1, 2024.
The strategic transaction provides Celsius with a 170,000-square-foot, modern manufacturing and warehouse facility that is expected to provide greater supply chain control, quicker innovation cycles and greater production flexibility. Charlotte, N.C.-based Big Beverages is a longtime Celsius co-packer, and the facility will continue to be principally dedicated to the manufacture of Celsius products. The Big Beverages management team and workforce are expected to remain with the operation.
Strategic Rationale
- Vertical integration of a plant primarily dedicated to Celsius provides incremental research and development and LTO (limited time offer) product opportunities, as well as a turnkey facility.
- Future expansion opportunities with ability to add additional capacity as the business scales and grows
- Per-case savings and improved leverage and margins expected
- Solid ROIC (return on invested capital) opportunity
- Earnings per share accretion potential
“We believe that this acquisition gives Celsius fantastic leverage to accelerate our product innovation and production capabilities so we can continue growing the energy drink category with our great tasting, functional and better-for-you performance energy drinks,” said John Fieldly, Chairman and CEO of Celsius. “The experienced team and modern facilities at Big Beverages are best-in-class, and we’re proud to continue working with these dedicated men and women to inspire even more consumers to live fit!”
Fieldly continued, “Vertical integration is a capital efficient growth lever that supports our vision to become the nation’s leading energy drink brand and unlocks shareholder value potential through better margin and profit structure.”
Founded in 2019, Big Beverages has been a trusted partner of leading beverage brands, known for its commitment to high-quality beverage production across the mid-Atlantic. It is one of the partners Celsius employs to manufacture quality beverages.
“The Big Beverages team has worked closely with Celsius for over four years, and we have always felt like we have been part of the Celsius family. We are proud of what we have accomplished, and we are very excited to join the most exciting and best tasting energy drink brand in the world,” said Ryan Goff, CEO of Big Beverages.
About Celsius Holdings, Inc.
Celsius Holdings, Inc. (Nasdaq: CELH) is the maker of energy drink brand CELSIUS®, a lifestyle energy drink born in fitness and a pioneer in the rapidly growing energy category. For more information, please visit www.celsiusholdingsinc.com.
