Alani Nu, the energy drinks and snack maker founded by personal trainer and social media influencer Katy Hearn, is exploring options that include a full or partial sale of the company at a valuation of more than $3 billion, according to four people familiar with the matter.Thomson ReutersAbigail is on the M&A team and writes about consumer and retail deals. She joined Reuters in 2022 from Debtwire where she covered leveraged finance and the primary debt market for three years. Previously, her work has appeared in the Wall Street Journal, CNBC and the Boston Business Journal. She majored in business journalism at Washington and Lee University. Contact: 332-261-5948Thomson ReutersAnirban Sen is the Editor in Charge for U.S. M&A at Reuters in New York, where he leads the coverage of the biggest deals. After starting with Reuters in Bangalore in 2009, Anirban left in 2013 to work as a technology deals reporter in several leading business news outlets in India, including The Economic Times and Mint. Anirban rejoined Reuters in 2019 as Editor in Charge, Finance to lead a team of reporters, covering everything from investment banking to venture capital. Anirban holds a history degree from Jadavpur University and a post-graduate diploma in journalism from the Indian Institute of Journalism & New Media. Contact:+1 (646) 705 9409
The company is working with JPMorgan Chase & Co (JPM.N) as it studies its options, the sources said. With the help of Hearn's social media following, the brand has grown rapidly since its launch in 2018 and now generates around $100 million of annual earnings before interest, taxes, depreciation and amortization, the sources added.
Congo Brands, a holding company owned by entrepreneurs Trey Steiger and Max Clemons, owns a significant stake in the company. Hearn's husband Haydn Schneider also owns a stake in Alani Nu.
The sources cautioned that no deal is certain and asked not to be identified because the matter is confidential. Alani Nu and Congo Brands did not respond to requests for comment. JPMorgan declined to comment.
Alani Nu's deliberations come as large beverage companies turn to dealmaking to spruce up their portfolios with energy drink brands popular with millennials.
Last year, PepsiCo (PEP.O) paid $550 million for an 8.5% stake in energy drink maker Celsius Holdings Inc, while Keurig Dr Pepper Inc (KDP.O) acquired a 30% stake in Nutrabolt, maker of energy drink brand C4 Energy, for $863 million.
Following an investment in 2018, Coca-Cola Consolidated Inc (COKE.O) bought the 85% stake of sports drink BODYARMOR it did not already own for $5.6 billion in 2021. It also paid $2.2 billion for a 16.7% stake in Monster Beverage Corp (MNST.O) in 2015.
Alani Nu sells its products online and at Target Corp (TGT.N), Walmart Inc (WMT.N) and other retailers. Earlier this month, the Louisville, Kentucky-based company launched a limited-edition energy drink called 'Kimade' with celebrity Kim Kardashian.
Congo Brands owns two more energy drink companies - 3D Energy and Prime, backed by wrestlers Logan Paul and KSI.