North Face Acquires Interest in La Sportiva
The North Face, Inc. announced that it has acquired a majority interest in La Sportiva S.r.L., a premier manufacturer and distributor of specialty outdoor footwear located in Ziano di Fiemme, Italy. In addition, The North Face has acquired the independently owned and operated La Sportiva, USA, located in Boulder, Colorado, giving The North Face distribution rights for the La Sportiva brand in North America.
La Sportiva S.r.L. is a premier brand of mountaineering, rock climbing and trekking shoes. The acquisition of La Sportiva S.r.L. is intended to accelerate the expansion of The North Face's recently introduced performance footwear collection. The combined marketing of The North Face and La Sportiva products will immediately allow The North Face to compete in significant outdoor footwear categories including trail running, mountaineering, trekking and rock climbing.
Design, development and manufacturing of the La Sportiva footwear collection will continue in La Sportiva's Ziano di Fiemme's facility and is anticipated to be co-branded with The North Face in Spring 2000. Distribution outside of North America will continue to be managed by La Sportiva, S.r.L.
The La Sportiva line will join The North Face's footwear collection scheduled introduction to the market in Spring 1999. Under the terms of the La Sportiva S.r.L. acquisition, The North Face agreed to pay approximately US$6.6 million for a 51% interest in the company; 20% of the interest is immediate, with a commitment for another 31% over the next two to five years. La Sportiva USA was acquired for US$3.0 million. The transactions will be paid through a combination of cash and newly issued Common Stock. The acquisitions will be accounted for as a purchase and will be consolidated with The North Face results.
"We chose La Sportiva because we consider their culture and products to be among the best," commented Jim Fifield, The North Face's Chief Executive Officer. "Their commitment to high performance products and quality design parallels that of our own company."
La Sportiva's Chief Executive Officer, Francesco Delladio stated, "We believe that the moment in time has come for our third generation footwear company to join forces with a partner that shares our culture and respect for mountaineering and the design of products that equip the world's best athletes. After careful review of many global brands, we've concluded that the synergy between La Sportiva and The North Face will make both of our companies stronger."