Vera Bradley Inc. is purchasing 75 percent ownership in Creative Genius, Inc., which also operates under the name Pura Vida Bracelets, for a cash consideration of 75 million dollars, and up to 22.5 million dollars in incremental earnout consideration. The company said, Vera Bradley can acquire the remaining 25 percent stake in five years post-closing. Pura Vida will operate as a subsidiary of Vera Bradley from its current headquarters in La Jolla, California, and will continue to be led by co-founders Griffin Thall and Paul Goodman.
Commenting on the deal to acquire Pura Vida, Robert Wallstrom, Chief Executive Officer of Vera Bradley, said in a statement: “The acquisition of Pura Vida is a terrific fit for Vera Bradley as we move into year two of our Vision 20/20 strategic plan and focus on growth. As we pursue ways to increase revenues, grow shareholder value, expand our customer community, and diversify the business, Pura Vida will be a great addition to our portfolio.”
Lifestyle brand Pura Vida offers bracelets, jewellery, and other lifestyle accessories. For the fiscal year ended December 31, 2018, the company reported total revenue of 68.3 million dollars, net income of 3.8 million dollars and adjusted EBITDA of 13.7 million dollars. Vera Bradley’s revenues totalled 416.1 million dollars for the fiscal year ended February 2, 2019, and as of that date, the company had cash, cash equivalents, and investments totalling 156.6 million dollars and no outstanding debt.
“With Vera Bradley providing the financial, organizational, and operational infrastructure, the Pura Vida lifestyle can grow as high and far as we want it to. We are excited and proud to partner with a great lifestyle brand that embraces our mission to create sustainable jobs for artisans around the world and raise awareness for charities through products that give back,” added Griffin Thall and Paul Goodman.
Picture:Facebook/Pura Vida Bracelets