Boca Raton, FL—Celsius Holdings completed the financial restructuring and acquisition of Func Food Group Oyj on October 25, according to a press release. Consideration for the transaction was approximately $15.1 million in cash and the assumption of $9.5 million of outstanding debt.
Func Food is a Nordic wellness company that markets and distributes beverages, protein bars, supplements, and superfoods under the brands Celsius, FAST Sports Nutrition, CocoVi, and FitFarm. Celsius first began its relationship with Func Food in 2016, when Func Food acquired Celsius’s former distributor.
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John Fieldly, President and CEO of Celsius Holdings, said in the release: “The acquisition of Func Food is an important next step in our strategy to build a globally dominate brand and solidifies our position in the Nordics while opening a new distribution platform for the rest of Europe. At the same time, this transaction provides us with the ability to bring an entirely new, yet complementary product offering to consumers: Func Food’s innovative FAST business. The acquisition, valued significantly below our revenue multiple, approximately 1x incremental revenue, provides immediate accretion to our shareholders and incremental opportunities to expand our European footprint.”
Func Food CEO Robin Lybeck added: “The acquisition of Func Food by Celsius is a very welcome development to our solid long-term partnership. Func Food has built Celsius to become a leading fitness beverage in the Nordic markets, with exceptionally high per capita-consumption in Sweden and we are looking forward to expanding the footprint of this great brand as we move ahead. Together with our category-leading offering in wellness nutrition, we are uniquely positioned to offer a complete range of products to our customers across current and future markets. As our key categories continue to grow across European markets, we feel the acquisition and our strong brands will enable us to capitalize on this development.”