Alo Yoga reported it hired investment bank Moelis & Co. to explore financial options, including potentially selling a stake in the company that could value the Los Angeles-based activewear company at $10 billion, sources told Reuters.
No transaction structure has been agreed to, and Alo Yoga may decide against any deal, sources indicated.
Alo is part of Color Image Apparel, which brought in $1 billion in revenue in 2022. Color Image also includes Bella+Canvas, a manufacturer of blank tee shirts and other apparel for wholesalers.
Founded in 2007 by Danny Harris and Marco DeGeorge, Alo Yoga is known for its celebrity following, including Taylor Swift, Katie Holmes, Hailey Bieber, and Kendall Jenner.
The yoga-themed brand has traditionally grown through wholesale distribution in stores, including Nordstrom, Neiman Marcus and Bloomingdale’s, and fitness boutiques CorePower Yoga and Equinox. However, it has accelerated investments in retail expansion with its 59th U.S. store opening in early October at Hudson Yards in New York City, and it reported plans in early 2023 to open over 100 stores by 2024, including its first stores in London and Paris.
Photo courtesy Alo Yoga
