Twelve months ago, in these columns we reported that the collapse of its market capitalization was surprising given the company's impressive growth trajectory and stratospheric profitability achieved without resorting to leverage.

However, there was a major risk involved: Celsius's high dependence on its shareholder, partner, and distributor PepsiCo, which retains significant power—even a quasi-right of life or death—over the brand. There was a high risk that PepsiCo, which already held 8.5% of the group's capital, would take advantage of Celsius's low valuation to attempt a "take under."

The latest developments, which have been welcomed by the market, seem to rule out this risk: the agri-food giant has instead invested $585m to increase its stake to 11% of Celcius' capital, via convertible bonds at a price of $51.75.

Above all, in return, Celsius has regained the rights and exploitation of the Rockstar Energy brand in North America and Canada. PepsiCo is getting rid of a millstone here, as Rockstar has not returned to growth since its acquisition in 2020 - despite efforts from its parent company.

Under a lot of pressure from Elliott activists, PepsiCo is thus reducing its problems while retaining remote control—as well as Rockstar's international rights. In any case the terms of the deal are favorable for Celsius, further reinforcing PepsiCo's interest in supporting it as best it can.

The cash injection was also necessary to secure Celsius' acquisition of the Alani Nu energy drink brand, which targets female consumers. The $1.65bn transaction values Alani at 3x its revenue and 12x is operating profit before investments (EBITDA)—albeit, once all synergies have been realized.

Alani's sales grew by 72.4% last year and have even reached triple-digit growth rates in recent months. In contrast, Celsius's pace of expansion has slowed significantly; its sales grew by 84% in the last quarter, but this was largely due to the integration of Alani.

Meanwhile, Celsius is valued at 5x its revenue and 25x its EBITDA over the next twelve months. Based on the last twelve months, these multiples amount to 9x revenue and over 100x EBITDA. Very strong growth prospects are therefore still factored into the price.

Rightly or wrongly? In any case, the DeSantis family, the group's largest shareholder, has deemed these circumstances opportune to sell a quarter of its stake on the market over the past few weeks.