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Columbia says the new brand will help the company diversify and reduce its dependence on cold-weather products.
Outdoor apparel maker and online retailer Columbia Sportswear Co. plans to acquire Prana Living LLC, a manufacturer and retailer of yoga and other fitness apparel, for $190 million in cash.
Prana’s products are sold through specialty bricks-and-mortar locations and online retailers in North America, as well as its own direct-to-consumer e-commerce site in the U.S., Prana.com. Prana also operates five retail stores in Colorado, California and Minnesota.
Founded in 1992, Prana grew total sales at a compound annual growth rate of more than 30 percent between 2010 and 2013, and is on pace to surpass $100 million in 2014, Columbia says. The merchant did not disclose what portion of that revenue comes from the web. Columbia brought in an estimated $75.2 million in online sales in 2013, up 15.0% from $65.4 million in 2012.
International sales comprised less than 5% of total revenue for Prana, but Columbia says it will be able to leverage its global assets and relationships to accelerate sales from international shoppers. “We are very excited to welcome Prana to Columbia’s brand portfolio,” says Tim Boyle, Columbia’s president and 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 sells online in 14 countries outside the U.S., including Austria, Canada, Chile, Finland, France, Germany and Spain.
Columbia Sportswear, ranked No. 263 in Internet Retailer’s new 2014 Top 500 Guide, says Prana will remain headquartered in Carlsbad, CA, and operate as a wholly owned subsidiary. Prana’s current CEO Scott Kerslake will report directly to Boyle.
Columbia did not respond to a request for comment on how the deal will impact Prana’s e-commerce site, if at all. Columbia.com is built on the Demandware e-commerce platform, according to the Top 500 Guide, and Prana.com runs on software eBay Inc.-owned Magento, according to BuiltWith.com, a company that tracks technologies running on web sites.
The deal is expected to close in the second quarter of this year.