Company: CELH
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001341766-25-000080
Chunk: 12

Company: Celsius Holdings, Inc.
Filing Date: 2025-05-06
Form: 10-Q
Item: Item 8
Chunk 12
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 of Big Beverages Contract Manufacturing, L.L.C. ("Big Beverages"), a longtime co-packer for Celsius located in Huntersville, North Carolina. The acquisition provides the Company with in-house manufacturing capacity including access to manufacturing and warehouse facilities and a skilled workforce. The total purchase consideration was cash of $75.3 million, which is net of $1.5 million of acquired cash. The transaction was accounted for as a business combination under ASC 805. There have been no changes to the purchase price allocation since December 31, 2024. A summary of the allocation of the total purchase consideration is presented below:Purchase ConsiderationGoodwillProperty, Plant and Equipment AcquiredOther Net Identifiable Assets AcquiredBig Beverages Acquisition$76,812 $58,257 $13,254 $5,301 

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Celsius Holdings, Inc.Notes to the Condensed Consolidated Financial Statements (Unaudited)March 31, 2025(Tabular dollars in thousands, except per share amounts)

The acquired intangible asset fair values consisted of the following, which are amortized on a straight-line basis over their estimated useful lives:Estimated Useful Life in YearsAt November 1, 2024Customer relationships6$900 Trade name3500 Intangibles$1,400 The fair value of identifiable intangible assets was estimated using discounted cash flow models with Level 3 inputs. Customer relationships were valued using the multi-period excess earnings method, and the trade name was valued using the relief-from-royalty method. Goodwill recognized in the transaction reflects expected synergies, including enhanced manufacturing capabilities and the assembled workforce, and was allocated to the Company’s single reporting unit. Acquisition-related costs of approximately $0.3 million were expensed as incurred and recorded in selling, general and administrative expenses.

6.    INVENTORIES

Inventories are valued at the lower of cost or net realizable value with costs approximating those determined under the first-in, first-out method. Changes in the inventory reserve are included in cost of revenue. Inventories-net consist of the following:March 31,2025December 31,2024Finished goods$117,354 $108,786 Raw materials28,559 27,088 Less: inventory reserve(4,754)(4,709)Inventories-net$141,159 $131,165 

7.    PROPERTY, PLANT AND EQUIPMENT

The following table