Columbia Sportswear purchases Prana
Columbia Sportswear is expanding its portfolio of brands (Sorel, Columbia, Mountain Hardwear...) in acquiring Prana, the ethical, eco-friendly brand well known among climbers and yoga practitioners.
The transaction amounts to 137 million euros (190 million dollars) paid to Prana’s controlling shareholder, Steelpoint Capital Partners, and all other minority members.
Founded in 1992, Prana recorded a 30% increase in turnover between 2010 and 2013, which is expected to surpass 72 million euros in 2014. The brand, whose teams will stay in their current locations - its headquarters remaining California, is distributed through its five stores in the United States, as well as 1,400 specialty retailers in the United States, Canada, Europe and Asia.
5% of Prana’s sales are made outside of North America, a figure expected to jump under Columbia.
The deal was made possible by solid results by Columbia Sportswear, which saw its sales rise by 22% to 306 million euros in its first quarter of this year, its net income climbing by 120% to 16 million euros - good results aided especially by Sorel and Columbia’s sales in the United States.
At the same time, it should be noted that while Prana’s results shot up across all geographies, its sales fell by 4% to 28 million euros in Europe, the Middle East and Africa.
For its complete fiscal year, Columbia Sportswear expects a 16 to 18% rise in turnover, a projection that excludes the acquisition of Prana.
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