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.
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.
The 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.