Cases of Celsius energy drinks at a retailer in San Francisco on March 17, 2025.
David Paul Morris | Bloomberg | Getty Images
PepsiCo has elevated its stake in energy drink maker Celsius Holdings by way of a $585 million deal, the businesses mentioned on Friday.
The deal, beneath which the soda large purchased 5% of Celsius’ most popular inventory, brings PepsiCo’s stake in the corporate to about 11% after conversion. PepsiCo had paid $550 million for an 8.5% stake in Celsius in 2022.
Shares of Celsius, which have greater than doubled in worth this 12 months, surged 11% in premarket buying and selling on the information.
As a part of the settlement, Celsius’ well being and wellness drinks model, Alani Nu, will transfer into PepsiCo’s distribution system in the U.S. and Canada.
The enhance in stake comes as PepsiCo seeks to capitalize on Alani Nu’s speedy progress and broad attraction amongst fitness-focused feminine customers.
Celsius had purchased Alani Nutrition in a $1.8 billion deal earlier this 12 months.