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

[ Share ]  [ E-mail ]  [ Leave a Comment ]

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

Join Corporate Dealmaker's LinkedIn forum

Also From Corporate Dealmaker

• Can auto dealers fight back?
• Astellas Pharma throws lifeline to Maxygen
• As new GM takes shape, another call for gas tax
• I-banks, law firms hire in response to oil M&A
• NewsMarket rescues Medialink

Corporate Dealmaker Home Page

From TheDeal.com

• Bank of America starts taking IOUs
• Crisis Dashboard: LIBOR, VIX, TED Spread, Dow
• Auction for AIG investments unit stalls
• SEC exec: Whistleblowers should be rewarded
• Crabtree & Evelyn begins bankruptcy process

TheDeal.com Home

Post a comment

Name:

Email Address:

URL:

Remember personal info?

Comments: (you may use HTML tags for style)

Please only click "Post" once. It may take a few moments to process.