Celsius Completes Acquisition of Nordic Wellness Company Func Food Group Oyj

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[{"type":"text","content":" BOCA RATON, Fla., Oct. 28, 2019 /PRNewswire/ -- Celsius Holdings, Inc. (Nasdaq: CELH), maker of the leading global fitness drink, CELSIUS®, today announced that it completed the previously announced financial restructuring and acquisition of Func Food Group Oyj (\"Func Food\") on October 25, 2019. Consideration for the transaction was approximately $15.1 million in cash and the assumption of $9.5 million of outstanding debt. \n\n \nFunc 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. Func Food represents a comprehensive portfolio of well-being products which promote active and, healthy lifestyles by investing in high-quality ingredients and best-in-class food and beverage expertise. Celsius first began its relationship with Func Food in 2016 when Func Food acquired People's Choice, our former distributor and assumed distribution of Celsius in the Nordics, solidifying Celsius® as the best-selling fitness drink in Sweden.\n\"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,\" said John Fieldly, President and Chief Executive Officer. \"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.\"\nFieldly continued, \"According to industry statistics, more than half of all European consumers plan to improve their health through food and beverages. Adding Func Food to the Celsius family will allow us to capitalize on these areas of opportunity and benefit from the growing Sports Nutrition and Energy Drink markets in Europe. The strategic acquisition of Func Food provides Celsius with additional scale and is expected to provide a meaningful increase to our top-line, with an expected pro-forma revenue run rate of approximately $100 million, while enabling us to maintain our historically solid gross margins and...

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