Celsius Pops on Alani Nu Acquisition
Here's our initial take on Celsius Holdings' (NASDAQ: CELH) fourth-quarter financial report.
Celsius came into its fourth-quarter financial report with investors having been prepared for some less-than-stellar numbers, given performance in recent periods. As a result, even what might otherwise have been a lackluster 4% year-over-year drop in revenue and an 18% decline in adjusted earnings per share were still better than most had anticipated. Numbers for the full year were a little better, with sales climbing 3% despite a 10% drop in earnings per share on an adjusted basis.
Yet those results paled in light of news that Celsius had agreed to acquire energy drink rival Alani Nu in a $1.8 billion acquisition. Celsius will pay $1.275 billion in cash, $25 million in potential earn-out payments, and $500 million in Celsius stock. The company has lined up debt financing to cover $900 million of the purchase price, with the remainder coming from cash on hand.
Source Fool.com
