Prana, a maker of yoga gear and a portfolio company of Steelpoint Capital, has signed an agreement to be acquired by Columbia Sportswear Company for $190 million. The purchase price equates to approximately 13 times Prana’s projected 2014 EBITDA. Steelpoint Capital acquired Prana from Liz Claiborne in April 2008 for approximately $37 million.
Prana is a designer, marketer, and retailer of climbing, yoga and active lifestyle apparel that is functional, environmentally friendly and designed to cross over into everyday clothing. Prana’s products are currently sold through specialty and online retailers across North America, as well as company-owned direct-to-consumer channels that include 5 US retail stores (Boulder, Portland, Denver, San Francisco, and Minneapolis), a US e-commerce site and direct-mail catalogs. The company was founded in 1993 and is based north of San Diego in Carlsbad, CA (www.prana.com).
Prana’s 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.
“We are very excited to welcome Prana to Columbia’s brand portfolio,” said Tim Boyle, Columbia’s president and chief executive officer. “Prana is a rapidly growing lifestyle apparel brand positioned at the intersection of today’s healthy, active lifestyles and socially conscious consumerism. A growing number of women and men are embracing Prana’s versatile products that are designed and manufactured with sustainability as a core value.
Steelpoint Capital invests in consumer companies in the health, wellness and fitness sectors. The firm is headquartered north of San Diego in Solana Beach, CA (www.steelpointcp.com).
Columbia Sportswear Company (NASDAW: COLM) manufactures and distributes outerwear and sportswear. The company was founded in 1938 and is headquartered in Portland (www.columbia.com).
“We are thrilled at the prospect of joining Columbia’s portfolio of distinct outdoors brands,” said Prana’s chief executive officer, Scott Kerslake. “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.”
Prana will remain headquartered in Carlsbad and operate as a wholly owned subsidiary of Columbia Sportswear with Mr. Kerslake continuing to serve as chief executive officer reporting directly to Columbia president and CEO Tim Boyle.
Columbia intends to fund the purchase of Prana from available cash and expects the transaction to close during the second quarter of 2014.
© 2014 PEPD • Private Equity’s Leading News Magazine • 4-30-14