Celsius Holdings Inc., maker of Celsius, has acquired Big Beverages Contract Manufacturing for $75 million. The transaction was completed using cash on hand and closed on Nov. 1, 2024, according to a press release.

Celsius said the transaction includes a 170,000-square-foot manufacturing and warehouse facility that is “expected to provide greater supply chain control, quicker innovation cycles and greater production flexibility. Charlotte, North Carolina-based Big Beverages is a longtime Celsius co-packer, and the facility will continue to be principally dedicated to the manufacture of Celsius products. The Big Beverages management team and workforce are expected to remain with the operation.”

“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. “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.”

Celsius said its strategic rationale for the purchase includes vertical integration of a plant primarily dedicated to Celsius, providing incremental research, development and LTO (limited time offer) product opportunities, a turnkey facility, and future expansion opportunities with ability to add additional capacity as the business scales and grows.

In August 2022, PepsiCo invested $550 million in Celsius in exchange for convertible preferred stock, reported NACS Daily. The investment was part of a distribution agreement, which allowed Celsius to enter more independent retailers, including convenience stores.