Celsius moves Alani Nu into PepsiCo distribution, acquires Rockstar Energy

Celsius Holdings (CELH) and PepsiCo (PEP) announced an agreement to strengthen their long-term strategic partnership. As part of the agreement: Celsius Holdings’ Alani Nu brand will move into the PepsiCo distribution system in the U.S. and Canada, PepsiCo has acquired $585M in newly issued convertible 5% preferred stock while extending its existing preferred stock to the same conversion period and Celsius Holdings has acquired the Rockstar Energy brand in the U.S. and Canada from PepsiCo. PepsiCo will continue to own the Rockstar Energy brand internationally. Celsius Holdings will become the PepsiCo strategic energy lead in the U.S., managing the Celsius, Alani Nu and Rockstar Energy brands, while PepsiCo will lead distribution for the Celsius Holdings portfolio in the U.S. and Canada. PepsiCo’s ownership in Celsius Holdings increased to approximately 11% on an as-converted basis, and PepsiCo will nominate an additional director to serve on Celsius Holdings’ board of directors.