Vera Bradley has signed an agreement to acquire a 75% interest in Creative Genius, Inc., the owner of Pura Vida, a California-based digitally native lifestyle brand that sells handmade bracelets and other jewelry.
With the acquisition, Pura Vida will receive a cash consideration of $75 million, which will be subject to certain price adjustments, and up to $22.5 million as a bonus if the company reaches certain performance-based targets by the end of 2019.
The transaction is expected to close in Q2 of Vera Bradley’s fiscal 2020, and the Indiana-based handbag and luggage company has the right to acquire the remaining 25% stake in Pura Vida five years post-closing.
“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,” said Robert Wallstrom, CEO of Pura Vida in a statement. “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.”
Vera Bradley and Pura Vida both have customer bases of loyal, multi-generational females and are positioned as “gifting,” socially connected brands that focus on community, charity and social consciousness.