Levi Strauss & Co. reached an agreement to acquire Beyond Yoga. Terms were not disclosed.
The transaction will be financed with cash and is expected to close during the fourth quarter of 2021, subject to customary closing conditions. Following the closing, additional financial and operational details will be shared.
The transaction is expected to be immediately accretive to gross margins, EBIT margins and EPS, while also contributing more than $100 million to net revenue in FY22.
Levi Strauss said the acquisition will bring the Beyond Yoga brand to more consumers through direct-to-consumer expansion, including brick and mortar retail, gender and category growth, and further development of its wholesale footprint with premium partners.
With this transaction, LS&Co. enters the activewear category to complement its women’s business and enable it to allocate its global resources and infrastructure to expand Beyond Yoga, building on its largely digital ecosystem. LS&Co.’s brand-building capabilities will help Beyond Yoga grow globally as it capitalizes on the “continued consumer uptake of premiumization, casualization and wellness trends,” said the brand.
“This acquisition establishes LS&Co.’s presence in the fast-growing activewear segment with a brand with tremendous growth potential,” said Chip Bergh, president and CEO, LS&Co. “The foundation the Beyond Yoga team has built, combined with LS&Co.’s resources, global reach and scale, make me confident that Beyond Yoga will become a powerful growth engine for LS&Co. and help drive our strategic priorities. Beyond Yoga’s value-led approach to business, centered on inclusivity and authenticity, makes it a natural fit for our company portfolio. We look forward to welcoming the Beyond Yoga team to LS&Co.”
“Beyond Yoga is an excellent addition to our brand portfolio and will accelerate our long-term growth algorithm,” said Harmit Singh, CFO, LS&Co. “The brand has more than doubled its revenue and grown profitability in a disciplined manner over the last three years. This acquisition further strengthens LS&Co.’s revenue trajectory, enhances our gross and EBIT margins and is immediately accretive to our earnings. Given our strong liquidity position, this transaction, which is consistent with
our capital allocation strategy, allows us to profitably scale a high-return, digital business.”
Following completion of the transaction, Beyond Yoga will operate as a standalone division within LS&Co. Co-founder Michelle Wahler who will continue as its CFO reporting to Bergh.
“We are honored and excited to become a part of the LS&Co. family,” said Wahler. “Joining their portfolio will enable us to accelerate our growth by leveraging the experience and resources of their team and their global infrastructure. We are thrilled to have LS&Co. help us expand our brand to a wider audience, as we continue to promote our mission of inclusivity and acceptance for all.”
“I have always had one goal—to make women feel good in their bodies. Beyond Yoga was created with this mission in mind, and it has served as the touchstone of the company,” said Jodi Guber Brufsky, founder and chief creative officer, Beyond Yoga. “It was important to me that when the time came, the company would move into the hands of someone whose values matched ours. We are so excited about this partnership and look forward to a successful future.”
Photo courtesy Beyond Yoga
