Posted on September 24, 2008 at 2:31 PM
Filed under: Acquisitions | Growth Strategy
Tagged: Athletica , Gap , Lululemon , M&A

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Gap Inc. is shaping up its online products and women's active apparel offerings through the $150 million acquisition of Athleta Inc.

Gap says its acquisition of Athleta, a Web site and catalog that sells yoga, running, skiing, snowboarding and surfing clothing, will enable it to add a "fifth tab" to its online store, which allows shoppers to purchase from all its brands (including Gap, Old Navy and Banana Republic) on a single site. 

Gap's online sales rose to $905 million in 2007, from $595 million in 2005. Athleta rang up at least $37 million in sales last year, according to Hoover's Inc. The clothing might also be featured in some of Gap's retail shops. As part of the deal, Athleta's CEO Joe Teno will remain as president of Athleta.

Meanwhile,  Athleta competitor Lululemon -- which might have considered acquiring Athleta -- may now be a target for a larger player, according to some analysts. - Maria Woehr

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