San
Francisco
Levi Strauss & Co has decided to buy
the yoga apparel brand Beyond Yoga. This acquisition will launch Levi into the
activewear market.
The size of the
all-cash deal has not been disclosed by Levi but it is expected that this
acquisition is going to add more than $100 million to its net revenue and will
shoot up its earnings. According to Chip Bergh, CEO, Levi, the company has been looking for an
acquisition for quite some time now. The activewear space looks very attractive
as it has enormous growth potential.
As per the
company, once the transaction is done, Beyond Yoga will operate as a standalone
division within its business. Michelle Wahler, the Co-Founder of the company
will continue to serve as the CEO of Beyond Yoga and will report to Bergh.
As per Harmit
Singh, CEO, Levi, the revenue of Beyond Yoga has doubled and its profitability
has doubled in the past three years.
Bergh also said
that Levi is planning to expand the Beyond Yoga brand outside of the United
States. It wants to open more brick-and-mortar stores. He feels that this deal
will help Levi to grow its women’s business. The aim is to grow this sector to
50%, he added. Bergh also said that once
people will start returning to the office, they will still prefer casual
clothing and even athleisure-type products.
Source – CNBC
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