Columbia Sportswear Co. has dipped its ordinarily chilly toes in the red-hot ath-leisure market with an agreement to acquire Prana Living LLC from Steelpoint Capital Partners and others for $190 million in cash.
Prana would join a portfolio of brands that includes Columbia, Mountain Hardwear, Sorel and Montrail while expanding the company’s business outside cold-weather apparel and into the fast-growing yoga market and adding an asset closely identified with sustainable products and practices.
“Prana fits Columbia’s strategic priorities to expand into categories that appeal to complementary consumer segments, reduce our dependence on cold-weather products and leverage Columbia’s global operational platforms to expand across key geographic markets,” said Tim Boyle, president and chief executive officer of Portland, Ore.-based Columbia.
Upon consummation of the deal, Prana would become a wholly owned subsidiary of Columbia while maintaining its headquarters in Carlsbad, Calif., and continuing to be led by Scott Kerslake as ceo.
Noting that Prana will be among a group of “distinct outdoor brands,” Kerslake said, “Prana is a brand founded on designing stylish, functional, active apparel made in an environmentally sustainable way. With Columbia’s financial strength, operational expertise and global market platform, we now will be able to reach a much broader audience of socially conscious consumers worldwide.”
Columbia said the $190 million purchase price equals about 13 times Prana’s projected earnings before interest, taxes, depreciation and amortization for the current year. The company is projected to surpass $100 million in sales in 2014 with an estimated $55 million landing on Columbia’s books after the acquisition. Columbia expects to fund the purchase through available cash.
Prana was founded in 1992 and provides apparel for active pursuits including yoga and rock climbing. The founders of the company sold it to the then Liz Claiborne Inc. in 2005 with management acquiring the firm for $36.5 million, plus up to $4 million in performance-based earn-outs, in 2008.
In addition to wholesale distribution, the brand operates five stores and its own e-commerce site in the U.S. but distribution outside North America currently accounts for less than 5 percent of revenues.
Columbia disclosed the acquisition as it reported improvements in first-quarter earnings and sales that exceeded analysts’ expectations and lifted its guidance for the full year. In the three months ended March 31, net income more than doubled to $22.3 million, or 63 cents a diluted share, from $10.1 million, or 29 cents, in the year-ago period. Net sales expanded 21.8 percent to $424.1 million from $348.3 million, with currency translation reducing the sales gain by about 1 percent. On average, analysts expected earnings per share of 33 cents on sales of $397.6 million.
@kering_official is spinning off its stake in puma in an effort to focus on its luxury brands, the brand operator announced yesterday. “We are proud to have supported the turnaround of Puma, which now has unrivaled capabilities to take full advantage of the specific dynamics of its global markets and is poised to achieve substantial growth,” said François-Henri Pinault, Kering’s chief executive officer and chairman. Artémis will become a “long-term strategic shareholder” of Puma with a 29 percent stake. #wwdnews #wwdfashion (📷: @jilliansollazzo)
The fashion world mourns for celebrated street style photographer, Nabile Quenum, who died at age 32 in Paris.
Quenum, creator of the fashion blog “J’ai Perdu Ma Veste,” was a fashion week fixture, and regularly shot for New York magazine’s The Cut, among other outlets, and brands such as Louis Vuitton, Moncler and Adidas. He was also actively involved in the #NoFreePhotos initiative, which kicked off in the fall. Read more about Quenum in @kbsmoke's story on WWD.com. #wwdnews
@verwanggang and @maisonladuree have teamed up on a dessert collab called Vera Wang Pour Ladurée. The collection, which launched this week, features a specialty macaroon, as well as a wedding cake inspired by one of the designer’s gowns. “I could not imagine a more delicate or sophisticated creation to grace any couple’s celebration,” said Wang. #wwdfashion
“I’m Russian and I love to use all these little tricks that I got from my grandma or my mom. We didn’t have a lot of money for creams or anything like that so we would use a garden as a beauty treatment regime. We’d put cucumber in the fridge and do a cucumber mask,” says model @irinashayk on one of her beauty hacks. WWD asked celebs what their go-to self-care rituals are. See what Naomie Harris, Freida Pinto and more said on WWD.com. #wwdeye #wwdbeauty (📷: @zefashioninsider)
Exclusive: @viktorandrolf are teaming up with @Zalando on a collection made from leftover clothing. The lineup, which lands at the retailer February 1, includes 17 pieces adorned with sliced up and repurposed overstock from the retailer’s private label collection. Pictured here is a look from the collection –– see more on WWD.com. #wwdfashion #wwdnews
@duewestnyc is the newest bar joining the collection of intimate neighborhood-focused spaces in the West Village. The cocktail menu, which includes bitters and syrups made in-house, offers a “Build Your Own Old-Fashioned” – like the one pictured here – where guests can choose from a list of spirits and unexpected sugars and bitters. #wwdeye
Spotted at last night’s National Board of Review gala in NYC: Angelina Jolie. Jolie – along with Meryl Streep, @lupitanyongo and more – continued the all-black dress code from Sunday’s Golden Globes. #wwdeye (📷: @lexieblacklock)