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Gap Acquires Athleta for $150 Million
Gap Inc. said Monday that it planned to acquire Athleta, a women’s active apparel company based in Petaluma, Calif., for about $150 million.
Athleta sells yoga, running, skiing, snowboarding and surfing gear online and by catalog.
The acquisition will help Gap expand its share of the $31 billion women’s active apparel sector in the United States and greatly expand its online presence. Gap’s online sales rose to $905 million in 2007, from $595 million in 2005, a 52 percent increase.
Athleta merchandise will be available on Gap’s new Web site, which allows consumers to click through all of its labels Gap, Old Navy, Banana Republic and Piperlime and pay one shipping fee.
“This strategic acquisition complements our brands perfectly and allows us to leverage our new online platform to expand into this significant retail sector,” said Glenn K. Murphy, Gap’s chairman and chief executive.
Joe Teno, Athleta’s chief executive, will remain as president of Athleta at Gap upon completion of the deal.
It will be a while, however, until consumers are able to shop for Athleta gear on Gap’s Web site. Louise Callagy, a spokeswoman for Gap, said the merchandise would not be online in time for this holiday season.
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