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SAN FRANCISCO–Gap Inc. (NYSE: GPS) announced today that it has agreed to acquire Athleta Inc., a popular women’s sports and active apparel company based in Petaluma, CA, for about $150 million in cash.
The acquisition will allow Gap Inc. to enhance its presence in the growing $31 billion women’s active apparel sector in the United States.
Following the acquisition, Athleta will become the â€œfifth tabâ€ on Gap Inc.’s unique online platform, called Universality. The innovative technology allows shoppers to browse and buy from all of the company’s brands in one shopping cart with a single shipping fee. Athleta’s products will be ultimately sold online alongside those from Gap, Banana Republic, Old Navy and Piperlime.
â€œAthleta is a great success story with loyal customers that will now become part of the Gap Inc. family of brands,â€ said Glenn Murphy, Gap Inc.’s Chairman and CEO. â€œThis strategic acquisition complements our brands perfectly and allows us to leverage our new online platform to expand into this significant retail sector.â€
Founded 10 years ago, Athleta has evolved into a premier lifestyle brand, offering high quality apparel that is stylish and functional for a variety of sports, including yoga, running, skiing, snowboarding and surfing. Customers can purchase Athleta product online or through the company’s catalog.
â€We’re thrilled to become part of this great company and to have found a partner that supports our vision for Athleta,â€ said Joe Teno, the current CEO of Athleta who will remain as President of Athleta at Gap Inc. upon the completion of the deal. â€œWith Gap Inc.’s e-commerce platform and iconic brands, more customers will learn about Athleta as we continue to provide our existing customers with the great products and service they’ve come to expect from us.â€
Teno will report to Toby Lenk, the president of the Gap Inc. Direct division.
The acquisition is subject to certain customary closing conditions.