The following is a list of strategic rationale for the acquisition:

•    Vertical integration of a plant primarily dedicated to Celsius provides incremental research and development and LTO (limited time offer) product opportunities, as well as a turnkey facility.

•    Future expansion opportunities with ability to add additional capacity as the business scales and grows

•    Per-case savings and improved leverage and margins expected

•    Solid ROIC (return on invested capital) opportunity

•    Earnings per share accretion potential

“We believe that this acquisition gives Celsius fantastic leverage to accelerate our product innovation and production capabilities so we can continue growing the energy drink category with our great tasting, functional and better-for-you performance energy drinks,” said John Fieldly, chairman and CEO of Celsius, in a statement. “The experienced team and modern facilities at Big Beverages are best-in-class, and we’re proud to continue working with these dedicated men and women to inspire even more consumers to live fit.

“Vertical integration is a capital efficient growth lever that supports our vision to become the nation’s leading energy drink brand and unlocks shareholder value potential through better margin and profit structure,” Fieldly continued.

Founded in 2019, Big Beverages has been a trusted partner of leading beverage brands, known for its commitment to high-quality beverage production across the mid-Atlantic, the company says. It is one of the partners Celsius employs to manufacture quality beverages.

“The Big Beverages team has worked closely with Celsius for over four years, and we have always felt like we have been part of the Celsius family. We are proud of what we have accomplished, and we are very excited to join the most exciting and best tasting energy drink brand in the world,” said Ryan Goff, CEO of Big Beverages, in a statement.