A Vancouver-based womenswear giant is expanding into men's fashion.
Aritzia announced this week that it has a "definitive agreement to acquire Reigning Champ", which manufactures premium athletic clothing.
Under the terms of the deal, Aritzia is buying a 75 percent stake in Reigning Champ for $63 million, with plans to purchase the remaining 25 percent in three installments between 2024 and 2026. The sale will close this month.
"Building on Aritzia's strong start to fiscal 2022, this acquisition meaningfully accelerates our product expansion into men's while bringing incremental growth to our already surging women's ecommerce and U.S. businesses," Aritzia founder, chairman, and CEO Brian Hill said in a company news release. "Capitalizing on our world-class operational expertise and infrastructure, men's, merchandised independently, will become a meaningful part of Aritzia's platform through our Reigning Champ acquisition."
Aritzia withstood the pandemic exceptionally well, recording net income of $19.2 million on $857.3 million in revenues in the 2021 fiscal year.
Reigning Champ is also based in Vancouver and was founded in 2007. Last September, it closed its Los Angeles store.
Its leadership team will continue operating the business in partnership with Aritzia for five years, according to the news release.
Hill created Aritzia in 1984 and it's since grown to have more than 100 boutiques across North America.
On June 15, its shares closed at $34.20 on the Toronto Stock Exchange. This year, Aritzia stock has risen nearly nine percent in value.