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A photo from lifestyle apparel website of prAna.

(prAna)

Columbia Sportswear Co. announced Tuesday an agreement to acquire prAna Living LLC, an apparent bid to deepen its reach into active women's lifestyle apparel and widen its clothing offerings for spring and summer.

About prAna

PrAna’s name is derived from the ancient Sanskrit word for breath, life and vitality of the spirit. The company was founded in 1992 and shipped its first products the following year. A company statement says, “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.” PrAna is the first North American apparel company to offer Fair Trade USA certified products and accessories and works to include fair trade styles annually. PrAna is sold in five flagship stores, online at prana.com, and in 1,400 specialty retailers across the U.S., Canada, Europe and Asia.

Columbia, the Washington County outdoor gear brand, will pay $190 million cash to PrAna’s majority owner Steelpoint Capital Partners and all other minority members.

Scott Kerslake

"We are very excited to welcome prAna to Columbia's brand portfolio," Tim Boyle, Columbia's chief executive, said in a news release. "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."

The transaction, expected to close by June, will be the largest in Columbia’s history. Previous acquisitions: Sorel (purchased out of bankruptcy for $8 million in 2000); Mountain Hardwear (purchased for $36 million in 2003); Montrail (purchased for $15 million in 2006); Pacific Trail (purchased for $20.4 million in 2006); and OutDry (purchased for $16.5 million in 2010).

PrAna will remain based in Carlsbad, Calif., where it was founded 21 years ago

PrAna employs about 165. Its existing management team, led by chief executive Scott Kerslake, will remain in place.

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, the news release says. The $190 million purchase price equates to approximately 13 times prAna's projected 2014 earnings before interest, taxes, depreciation and amortization.

With the acquisition, Columbia moves into a space alongside competitors associated more with a yoga studio than a mountain trail, such as Lululemon, Athleta and Title 9. For that matter, Nike and Adidas also offer active apparel similar to prAna's.

But prAna offers clothing beyond the studio, including dresses, skirts and jackets for women and shirts and pants for men (and swimwear for both sexes).

After the acquisition, Columbia said it expects about

$55 million

in prAna sales over the remainder of 2014. Columbia expects prAna's sales to grow at a double-digit rate in 2015.

-- Allan Brettman