Columbia Sportswear completes acquisition of prAna Living

03 Jun '14

4 min read

"We are thrilled to officially join Columbia's family of distinct active and outdoor brands," said prAna's chief executive officer, Scott Kerslake. "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."

PrAna sales grew at a compound annual growth rate of more than 30 percent between 2010 and 2013, and are on pace to surpass $100 million in 2014 and generate low double-digit operating margin. PrAna's products are currently sold through approximately 1,400 select specialty and online retailers across North America, as well as company-owned direct-to-consumer channels that include 5 U.S. retail stores, a U.S. ecommerce site and direct-mail catalogs.

North America currently accounts for approximately 95 percent of prAna's annual sales, suggesting a substantial opportunity to expand by leveraging Columbia's existing distribution platforms in over 90 countries outside of North America.

Columbia funded the purchase from available cash. In 2014, Columbia expects to recognize incremental prAna net sales of approximately $55 million, which is expected to contribute low double-digit operating margin to Columbia's consolidated 2014 results, excluding the effect of approximately $4 million in one-time transaction fees, and approximately $9 million in amortization of certain acquired assets and other integration costs.

In 2015, Columbia expects prAna's annual sales to increase at a double-digit rate over 2014 and operating margin to be in the low-teens, excluding anticipated purchase accounting amortization and other integration costs of approximately $5 million, resulting in accretion to Columbia's consolidated earnings in 2015.

J.P. Morgan Securities LLC served as exclusive financial advisor to Columbia Sportswear Company in the transaction and Wachtell, Lipton, Rosen & Katz served as the company's legal advisor.

About Columbia Sportswear

Columbia Sportswear Company is a leading innovator in the global outdoor apparel, footwear, accessories and equipment industry. Founded in 1938 in Portland, Oregon, our products are sold in approximately 100 countries and have earned an international reputation for innovation, quality and performance. Our products feature innovative technologies and designs that protect outdoor enthusiasts from the elements, increase comfort, and make outdoor activities more enjoyable. In addition to the Columbia brand, Columbia Sportswear Company also owns the outdoor brands Mountain Hardwear, Sorel, Montrail and OutDry.

About prAna

PrAna is a lifestyle apparel brand that draws its name from the ancient Sanskrit word for breath, life and vitality of the spirit. The prAna team creates mindfully-designed, purposeful and stylish clothing for free spirited people to pursue their passions from the mountains to the beach. Since its founding in 1993, prAna has been committed to sustainable practices in both its operations and supply chain, working to reduce its impact on soils, water supplies and other natural resources while promoting conservation.

Columbia Sportswear Company

More Columbia Sportswear Company News... More Apparel/Garments News - United States Of America...