Columbia Sportswear Completes Acquisition Of PrAna Living

(RTTNews) - Columbia Sportswear Company (COLM) said MOnday that it has completed its acquisition of prAna Living LLC for a purchase price of $190 million in cash, subject to customary post-close working capital adjustments.

PrAna will join Columbia's portfolio of authentic, active outdoor brands, which include Columbia, Mountain Hardwear, Sorel and Montrail.

PrAna will remain headquartered in Carlsbad, California as a wholly owned subsidiary of Columbia Sportswear Company and will continue to be led by current CEO Scott Kerslake, who will report directly to Columbia president and CEO Tim Boyle.

Columbia funded the purchase from available cash. Columbia expects to recognize incremental prAna net sales of about $55 million in 2014, which is expected to contribute low double-digit operating margin to Columbia's consolidated 2014 results, excluding the effect of about $4 million in one-time transaction fees, and about $9 million in amortization of certain acquired assets and other integration costs. In 2015, Columbia expects prAna's annual sales to increase at a double-digit rate over 2014 and operating margin to be in the low-teens, excluding anticipated purchase accounting amortization and other integration costs of about $5 million, resulting in accretion to Columbia's consolidated earnings in 2015.