US: Columbia Sportswear closes PrAna deal
Outdoor apparel and footwear specialist Columbia Sportswear has closed its acquisition of lifestyle apparel brand, PrAna Living.
The agreement was signed in April for US$190m, in a deal that will help Columbia expand and reduce its dependence on cold-weather items.
"We are very excited to officially welcome prAna to Columbia's brand portfolio," said Tim Boyle, Columbia's CEO. "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."
Columbia Sportswear completes prAna Living´s acquisition Tuesday, 03 June 2014 Columbia Sportswear Company (NASDAQ: COLM), a leading global outdoor apparel has announced that at midnight, May 30, 2014 it successfully completed its previously announced acquisition of prAna Living LLC for a purchase price of 190 million dollars in cash.
"We are very excited to officially welcome prAna to Columbia's brand portfolio," said Tim Boyle, Columbia's president and chief executive officer. "PrAna will be a great complement to our existing brands. 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.
PrAna will join Columbia's portfolio of authentic, active outdoor brands, which include Columbia, Mountain Hardwear, Sorel and Montrail.
However, the acquird brand will will remain headquartered in Carlsbad, California as a wholly owned subsidiary of Columbia Sportswear Company. Likewise, its current CEO Scott Kerslake will keep the helmet and report directly to Columbia president and CEO Tim Boyle.
"With this important transaction now complete, we look forward to providing growth-driving resources to CEO Scott Kerslake and the entire prAna team as they pursue prAna's significant global brand potential," added Boyle.
On the news, prAna's chief executive officer, Scott Kerslake assured they "are thrilled to officially join Columbia's family of distinct active and outdoor brands."
"Since prAna's founding in 1993, our team has been committed to inspiring healthy, active, free-spirited lifestyles rooted in yoga, rock-climbing and fitness, by designing stylish, functional, active apparel made in an environmentally sustainable way. With Columbia's financial strength, operational expertise, and global market platform, we will now be able to reach a much broader audience of socially conscious consumers worldwide."
J.P. Morgan Securities LLC served as exclusive financial adviser to Columbia Sportswear Company in the transaction and Wachtell, Lipton, Rosen & Katz served as the company's legal advisor.
Original source: Columbia Sportswear
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