Levi Strauss & Co makes first activewear acquisition
San Francisco-headquartered denim and casualwear company Levi Strauss & Co (LS&Co) has agreed an undisclosed all-cash deal to buy Los Angeles-based brand Beyond Yoga, which specialises in premium athletic apparel for sizes XXS-4X.
The transaction, which represents LS&Co’s first foray into the activewear space and will see Beyond Yoga operate as a standalone division of the company, is expected to close during the fourth quarter of this year.
President and chief executive of the iconic denim maker, Chip Bergh, commented: “The foundation that the Beyond Yoga team has built, combined with LS&Co’s resources, global reach and scale, make me confident that the brand will become a powerful growth engine for LS&Co and help drive our strategic priorities.
“Beyond Yoga’s values-led approach to business, centred on inclusivity and authenticity, makes it a natural fit with our company portfolio.”
LS&Co said that it expects this acquisition to contribute more than $100 million to its net revenue during fiscal year 2022. It further added that its vision for the younger brand includes broadening its existing audience through direct-to-consumer expansion, such as with brick-and-mortar retail (Beyond Yoga mainly operates in the digital space currently) and category growth.
According to LS&Co’s chief financial officer, Harmit Singh, the activewear brand has more than doubled its revenue and “grown profitably in a disciplined manner” over the last three years.
Co-founder and chief creative officer at Beyond Yoga, Jodi Guber Brufsky, said: “I have always had one goal: to make women feel great in their bodies. Beyond Yoga was created with this mission in mind and it has served as the touchstone of the company.
“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.”
Image: Beyond Yoga.
