American clothing company Levi Strauss has entered the activewear space by acquiring athletic and lifestyle apparel brand Beyond Yoga for an undisclosed amount.
Beyond Yoga will operate as a standalone division within Levi Strauss once the deal is completed, which is expected to happen in the fourth quarter of this year.
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Michelle Wahler will continue to serve as Beyond Yoga’s CEO following the acquisition.
Levi Strauss expects the deal to increase Beyond Yoga’s reach via direct-to-consumer expansion.
This includes brick-and-mortar retail and gender and category growth, as well as the development of Beyond Yoga’s wholesale presence with premium partners.
Levi Strauss expects the takeover to add more than $100m to its net revenue in the next fiscal year and immediately boost its earnings.
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By GlobalDataThe company plans to provide additional financial and operational details after the deal is completed.
Levi Strauss president and CEO Chip Bergh said: “This acquisition establishes [our] presence in the fast-growing activewear segment with a brand with tremendous growth potential.
“The foundation the Beyond Yoga team has built, combined with [Levi Strauss’] resources, global reach and scale, make me confident that Beyond Yoga will become a powerful growth engine for [us] and help drive our strategic priorities.
“Beyond Yoga’s values-led approach to business, centred on inclusivity and authenticity, makes it a natural fit to our company portfolio. We look forward to welcoming the Beyond Yoga team to [Levi Strauss].”
The deal is subject to customary closing conditions and will be funded using cash.
Michelle Wahler said: “We are honoured and excited to become a part of the [Levi Strauss] family.
“Joining their portfolio will enable us to accelerate our growth by leveraging the experience and resources of their team and their global infrastructure.”
Last month, Levi Strauss reported a 148% jump in its second-quarter net revenues to $1.3bn on a constant-currency basis, up from $498m a year prior.
