Fitness drink maker Celsius Holdings Inc. said Sept. 11 that it will buy wellness company Func Food Group Oyj for a total purchase price of $24.6 million.
The agreement between both companies includes the restructuring of Finland-based Func Food's outstanding debt. Func Food posted approximately $37 million in revenue and $702,000 in adjusted EBITDA during 2018, according to 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," Celsius President and CEO John Fieldly said in a statement.
He added that the transaction also provides the company the ability to bring a new, complementary product offering to consumers, as well as opportunities to expand its European footprint.
Florida-based Celsius will buy Func Food for approximately $15.1 million in cash and the assumption of $9.5 million of outstanding debt. The company will fund the deal with proceeds from a follow-on equity public offering of $25 million.
The transaction is expected to close in October, subject to the follow-on offering and other customary closing conditions.
