Liz Claiborne acquires prAna for 34million

After a long time trying to guess who would eventually buy prAna it turns out to be Liz Claiborne? Who would've thought? They are going to allow the current co-owners, Beaver and Pam Theodosakis and Demian Kloer, to remain running the business. They will continue to focus on high quality products and running an environmentally friendly business. The acquisition price is currently estimated to be $34.4 million, consisting of an initial payment of approximately $32.5 million (representing 60% of prAna's initial valuation) and the retirement of debt at closing (approximately $1.9 million), plus additional payments based upon a multiple of prAna's earnings in fiscal years 2008, 2009 and 2010. PrAna is expected to generate annual net sales of approximately $30 million in fiscal 2005.

Although Liz Claiborne has a proven track record of acquring apparel brands and letting them preserve their brand identity , this is their first time diving into the outdoor apparel area.

There will be more to come on this story.

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