Levi Strauss & Co. agreed to buy the yoga apparel brand Beyond Yoga on Thursday, launching the jeans maker into the competitive activewear space.
Levi didn’t disclose financial details of the deal, which is expected to close in the fourth quarter.
Levi hopes the acquisition will add more than $100 million to its net revenue next fiscal year, and immediately bolster its earnings.
“We’ve been looking at acquisitions for quite some time, and the activewear space has obviously been very, very attractive,” Levi CEO Chip Bergh said in an interview. “We see enormous growth potential here. It puts us as a company smack into the high-growth, high-margin activewear segment.”
After the transaction is complete, Levi said Beyond Yoga will operate as a standalone division within its business. Co-founder Michelle Wahler will continue to serve as Beyond Yoga CEO, reporting to Bergh.
