By Abigail Summerville and Anirban Sen
NEW YORK (Reuters) - 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.
The company is working with JPMorgan Chase & Co (NYSE:JPM) 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 (NASDAQ:PEP) paid $550 million for an 8.5% stake in energy drink maker Celsius Holdings (NASDAQ:CELH) Inc, while Keurig Dr Pepper (NASDAQ:KDP) Inc acquired a 30% stake in Nutrabolt, maker of energy drink brand C4 Energy, for $863 million.
Following an investment in 2018, Coca-Cola (NYSE:KO) Consolidated Inc 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 (NASDAQ:MNST) in 2015.
Alani Nu sells its products online and at Target Corp (NYSE:TGT), Walmart (NYSE:WMT) Inc 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.