Gap Inc. is buying Athleta Inc., a women’s sports and active apparel company, for about US$150 million in cash, as part of its strategy to diversify its brand offerings.
The company said its acquisition of Athleta, which sells its merchandise primarily online and through its catalogue, will enhance its presence in the growing $31 billion women’s active apparel sector in the U.S.
Following the purchase, Athleta is expected to eventually become the fifth brand in Gap’s online portfolio, which includes its namesake brand, Old Navy, Banana Republic and online shoe retailer Piperlime.
“Athleta is a great success story with loyal customers that will now become part of the Gap Inc. family of brands,” said Glenn Murphy, Gap Inc.’s chairman and CEO, in a statement. “This strategic acquisition complements our brands perfectly and allows us to leverage our new online platform to expand into this significant retail sector.”
In June, Gap launched an online platform where consumers can buy items from all of its brands in one shopping cart with a single shipping fee.
Athleta caters to the 25-to-55 age group and offers clothes for yoga, running, skiing, snowboarding and surfing.
