alienPDX Posted March 13, 2003 Share Posted March 13, 2003 Thought this might be of interest to some of you out there. Obviously, some of this text was pulled straight from MHW's PR department ... Columbia Sportswear and Mountain Hardwear Join Forces Thursday March 13, 4:00 pm ET PORTLAND, Ore.--(BUSINESS WIRE)--March 13, 2003--Outdoor apparel and footwear leader Columbia Sportswear Company (Nasdaq:COLM - News) announced today that it has entered into a definitive merger agreement to acquire Mountain Hardwear Inc. for aggregate consideration of approximately $36 million, including approximately $30 million in cash and $6 million of debt assumption. ADVERTISEMENTThe merger is subject to approval by the shareholders of Mountain Hardwear and is expected to close on March 31, 2003. Mountain Hardwear designs, develops and markets the most technically advanced equipment and apparel available to outdoor enthusiasts and professionals, many of whom are icons in the global mountaineering community. Mountain Hardwear, which is based in Richmond, Calif., recorded an unaudited $31.4 million in revenue during 2002. Upon closing, the company will be a wholly owned subsidiary of Columbia Sportswear. Columbia Sportswear's senior management will host a telephone conference call at 2:00 p.m. PT on Thursday, March 13, 2003. To participate, please dial 800/358-8449 in the United States (outside the United States, please dial 706/634-7408) five to ten minutes prior to the call. The call will also be webcast live from the investor section of columbia.com, and archived for two weeks. Columbia Sportswear CEO Tim Boyle commented, "By acquiring Mountain Hardwear, we continue to build a dynamic portfolio of strong outdoor brands. We are committed to upholding Mountain Hardwear's brand integrity and authenticity for the benefit of its intensely loyal consumer base. Mountain Hardwear will continue to operate as an independent brand. "Backed by Columbia's financial strength and operating expertise, the Mountain Hardwear brand provides Columbia the opportunity to profitably increase sales by up to $100 million over five years. Our growth strategy for Mountain Hardwear includes further penetrating high-end specialty retailers, expanding its current product offering, expanding international distribution, and selectively broadeningretail distribution of its products consistent with its specialty store heritage and authentic brand and consumer base. Over time, we plan to integrate sourcing and distribution functions, which should provide us with the opportunity to increase efficiencies and expand gross and operating margins for both companies." Mountain Hardwear President Jack Gilbert, Vice President of Design and Sourcing Paul Kramer, and Vice President of Sales and Marketing Mike Wallenfels will remain executive leaders of the company they founded in 1993. Mountain Hardwear's employees, many of whom were also involved in founding the company, will remain at the company's headquarters in Richmond, Calif. "We needed a corporate partner who agreed that pushing the limits of what is technically possible is the essence of our success, and who is committed to fueling that vision," said Gilbert. "This transaction marks a significant milestone in the development of our business, and gives us the opportunity to continue building the Mountain Hardwear brand on a global scale. Columbia understands the unique value, positioning and integrity of the Mountain Hardwear brand, and togetherwe are committed to providing leading edge apparel and equipment to outdoor enthusiasts and professionals." RBC Capital Markets represented Mountain Hardwear in the merger. Quote Link to comment Share on other sites More sharing options...
jon Posted March 13, 2003 Share Posted March 13, 2003 I didn't realize Columbia was having that hard of a time designing a waterproof jacket. Quote Link to comment Share on other sites More sharing options...
JoshK Posted March 14, 2003 Share Posted March 14, 2003 "Mountain Hardwear designs, develops and markets the most technically advanced equipment and apparel available to outdoor enthusiasts and professionals, many of whom are icons in the global mountaineering community." BWAHAHAHAH...whatever This fits, columbia is cheap and mountain hardware sucks. It's a match made in heaven. Quote Link to comment Share on other sites More sharing options...
cracked Posted March 14, 2003 Share Posted March 14, 2003 Yeah, notice how just about every MH jacket made has zipper pulls that will ride underneath a harness or hipbelt. Ouch. Quote Link to comment Share on other sites More sharing options...
Dr_Flash_Amazing Posted March 14, 2003 Share Posted March 14, 2003 "Backed by Columbia's financial strength and operating expertise, the Mountain Hardwear brand provides Columbia the opportunity to profitably increase sales by up to $100 million over five years. Our growth strategy for Mountain Hardwear includes further penetrating high-end specialty retailers, expanding its current product offering, expanding international distribution, and selectively broadeningretail distribution of its products consistent with its specialty store heritage and authentic brand and consumer base. Over time, we plan to integrate sourcing and distribution functions, which should provide us with the opportunity to increase efficiencies and expand gross and operating margins for both companies." Translation: we're hoping to keep the Balinese slave laborers working for three cents a day so that we can keep cranking out down jackets and edge The North Face out of there share of the Nordstrom's market! Quote Link to comment Share on other sites More sharing options...
Montana_Climber Posted March 14, 2003 Share Posted March 14, 2003 Mountain Hardwear is going totally against the reason they were first formed! They broke off of The North Face because they were tired of the corporate big whigs making all the decisions. If they didn't want suits running the show then, why now? They seem to be a bit of the hipocrits right now. Quote Link to comment Share on other sites More sharing options...
Dru Posted March 14, 2003 Share Posted March 14, 2003 Why does anyone sell out: Cause they want the money. When they say "its not about the money" you can bet it is. $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ $ucka$ Quote Link to comment Share on other sites More sharing options...
iain Posted March 14, 2003 Share Posted March 14, 2003 does this mean ed viesturs will be wearing neon Bugaboo jackets and stuff? Quote Link to comment Share on other sites More sharing options...
Dru Posted March 14, 2003 Share Posted March 14, 2003 i thought he was already Quote Link to comment Share on other sites More sharing options...
mbcracken Posted March 14, 2003 Share Posted March 14, 2003 iain said: does this mean ed viesturs will be wearing neon Bugaboo jackets and stuff? Close, we'll probably see Ed's Mom driving over Ed frozen in a ice rink breathing thru a straw... Quote Link to comment Share on other sites More sharing options...
iain Posted March 14, 2003 Share Posted March 14, 2003 ah yes, Ma Viesturs. She is TOUGH! Quote Link to comment Share on other sites More sharing options...
cluck Posted March 15, 2003 Share Posted March 15, 2003 Yuck. Columbia blows. Mountain Hardwear has an entirely different target market. Columbia should continue to focus on the cheap-O resort skier who doesn't care if their jacket weighs 10 pounds and leaks like a sieve. Quote Link to comment Share on other sites More sharing options...
erik Posted March 16, 2003 Share Posted March 16, 2003 oh well. if you don't like it don't buy it. nuff' said. when i was a kid i was sooo happy to get one of those columbia jackets that had the zip out inside. it really made my day. though one time at skool(6th geade) i lost the shell and was crushed. i did also get and still have a columbia goretex coat. works like the resst of the goretex shit. big business is big business. no small corp can survive in a specialized market when we are about to kill hundreds of thousands of people for money. wait till we finnish of the arabs, and we increase our fossil fuel output...we won't need any of those stinkin jackets. Quote Link to comment Share on other sites More sharing options...
cluck Posted March 17, 2003 Share Posted March 17, 2003 You have a Gore-Tex Columbia jacket??? I thought WL Gore wouldn't lease their product to Columbia because Columbia didn't make the cut. Acquiring Mountain Hardwear is just an easy way for Columbia to capture the serious outdoor enthusiast market niche without putting the time or effort in to build a serious outdoor product line. I know all the companies do it, but I don't have to like it. Quote Link to comment Share on other sites More sharing options...
erik Posted March 17, 2003 Share Posted March 17, 2003 cluck, yuppers it is from the 80's belonged to my old man first then i jacketed it! ha! im so oldskool! Quote Link to comment Share on other sites More sharing options...
iain Posted March 17, 2003 Share Posted March 17, 2003 just jonesing to make it in the next Warren Miller flick. was that you on the t-bar in Extreme Winter? bwaaha Quote Link to comment Share on other sites More sharing options...
erik Posted March 17, 2003 Share Posted March 17, 2003 you know it!! i am keepin it real!!! Quote Link to comment Share on other sites More sharing options...
Greg_W Posted March 17, 2003 Share Posted March 17, 2003 I have some Mtn. Hardware gear that I like; however, like many college girls they have a weight problem. Hope Columbia doesn't fuck the shit up even more. Quote Link to comment Share on other sites More sharing options...
allison Posted March 17, 2003 Share Posted March 17, 2003 Sierra Designs was purchased last week as well, though I can't remember who bought them. TNF let their tent designer go last week too. I hear someone at a party this weekend say, "they'll just have to have one of [TNF's parent company, Vanity Fair] the bra designers do the tents now." Just imagine the possiblities. Upstarts considering forming a new tent company, now it is the time to jump in and fill the massive hole that is forming. Quote Link to comment Share on other sites More sharing options...
iain Posted March 17, 2003 Share Posted March 17, 2003 jeezus it's like a soap opera Quote Link to comment Share on other sites More sharing options...
erik Posted March 17, 2003 Share Posted March 17, 2003 and iain you should stop singin and wash your mouth out!! Quote Link to comment Share on other sites More sharing options...
gapertimmy Posted March 20, 2003 Share Posted March 20, 2003 interesting, the pres and ceo of powdr corp, parent company of bachelor, park city and alpine meadows, was a major holder in mountain hardware. Quote Link to comment Share on other sites More sharing options...
cj001f Posted March 20, 2003 Share Posted March 20, 2003 gapertimmy said: interesting, the pres and ceo of powdr corp, parent company of bachelor, park city and alpine meadows, was a major holder in mountain hardware. I seem to remember that one of the MH founders was related to a Powdr Corp guy. I may be wrong on that though.. Quote Link to comment Share on other sites More sharing options...
iain Posted March 20, 2003 Share Posted March 20, 2003 the plot thickens! soon we will all have have McDonal'teryx windbreakers Quote Link to comment Share on other sites More sharing options...
Dru Posted March 20, 2003 Share Posted March 20, 2003 Quote Link to comment Share on other sites More sharing options...
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