Gap acquires catalog and Internet retailer Athleta
Gap Inc. has agreed to acquire catalog and Internet retailer Athleta Inc. for approximately $150 million in cash. The move will likely bolster its online business and presence in the growing women's active apparel sector.
Athleta is a 10-year-old women's sports and active apparel retail brand offering apparel for a variety of sports, including yoga, running, skiing, snowboarding and surfing.
Gap will incorporate Athleta into its Universality online platform, which enables shoppers to browse and buy from all of the company's brands in one shopping cart with a single shipping fee. Gap's other brands include Banana Republic, Old Navy and Piperlime.
“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 Murphy, chairman and CEO of Gap Inc., in a statement.
Joe Teno, the current CEO of Athleta, will remain as president of Athleta at Gap Inc. upon the completion of the deal. Teno will report to Toby Lenk, president of the Gap Inc. direct division.