Published: August 04, 2010
Columbia Sportswear Company to Acquire OutDry Technologies S.r.l.
PORTLAND, Ore. & BUSTO ARSIZIO, Italy - (BUSINESS WIRE) - Columbia Sportswear Company (NASDAQ:COLM), a leading innovator in active
outdoor apparel, footwear, accessories and equipment, announced today
that it has signed an agreement to acquire OutDry Technologies S.r.l.,
which owns the intellectual property and other assets comprising the OutDry
brand and related business, via a cash purchase from Nextec S.r.l.,
based near Milan, Italy. The transaction is expected to close during the
third quarter of 2010, subject to customary closing conditions, and is
not expected to have a material effect on the company's 2010 operating
results.
"Columbia's acquisition of OutDry is the latest example of our strategy
to build a portfolio of innovative technologies that deliver performance
and protection benefits of greatest importance to outdoor consumers,"
said Tim Boyle, president and CEO of Columbia. "We view OutDry's
proprietary construction methods, under development since 1998, as the
'gold standard' for producing waterproof, breathable footwear and gloves
that outperform products still relying on the 25-year-old method of
internal booties and bladders. We intend to deploy OutDry across our
portfolio of outdoor brands, including Columbia,
Mountain
Hardwear, Sorel®
and Montrail,
as well as to market OutDry to select leading brands within and beyond
the outdoor industry."
Boyle concluded, "We believe the combination of OutDry in our footwear
and gloves, together with our new Omni-Dry ultrabreathable waterproof
membrane found in select Columbia apparel styles beginning in Spring
'11, means that Columbia now offers the most compelling combination of
technologies to deliver head-to-toe waterproof breathable performance to
outdoor consumers."
OutDry's patented and patent-pending construction
methods bond a waterproof, breathable membrane directly to the
inside of the outermost layer of a shoe or glove, thereby
preventing water or dirt from penetrating to internal airspaces and
fabric layers as commonly occurs with products that rely on bulky
booties or bladders. OutDry improves waterproof, breathable performance,
reduces water-weight gain, maintains insulation capacity, and improves
fit and dexterity, resulting in greater comfort. Avoiding water
penetration beyond the outermost layer may also help reduce the
incidence of mold, mildew and bacteria that often develop when internal
fabric layers become wet.
Columbia's vice president of global footwear, Mark Nenow, sees
significant benefits for footwear consumers, noting "OutDry finally
delivers the waterproof breathable innovation that outdoor consumers
have been asking for. This is ground breaking waterproof breathable
footwear innovation for the mountaineer, the hiker, the multisport
athlete, the trail running enthusiast, the road runner - any consumer
that wants waterproof footwear without having to sacrifice performance,
fit, light weight and comfort."
In Fall 2009, Columbia's Mountain Hardwear brand introduced a selection
of high-performance gloves manufactured using OutDry's patented
construction processes.
Mountain Hardwear President Topher Gaylord commented, "Our consumers
demand quality, performance, and superior functionality, and seek the
most innovative solutions that allow them to challenge the edges of
their potential. Our OutDry gloves have revolutionized our ability to
deliver exceptional weather protection, warmth, and dexterity, providing
consumers with superior performance over bladder-based construction
methods."
OutDry has gained increased awareness since winning
the coveted Ecodesign award at the Volvo Sports Design competition
at ISPO 2008, considered one of the most prestigious events within the
global outdoor industry.
Nextec S.r.l. chief executive officer and co-founder Luca Morlacchi
added, "We believe Columbia's decision to purchase OutDry's technology
portfolio and to incorporate it across its portfolio of leading outdoor
brands will help raise awareness of OutDry's unique solution to
producing truly waterproof breathable footwear and gloves. We look
forward to working with our new partners at Columbia Sportswear to
further develop the OutDry technology, and to market OutDry to other
leading brands, extending its truly waterproof breathable performance
benefits to consumers around the world."
Nextec S.r.l. cofounders and brothers Luca and Matteo Morlacchi will
serve as chief executive officer and general manager, respectively, of
OutDry Technologies S.r.l., which will remain headquartered near Milan,
Italy, and operate as a wholly owned subsidiary of Columbia Sportswear
Company.
Columbia and OutDry plan to provide live demonstrations of OutDry's
performance benefits during the Outdoor Retailer Summer Market trade
show at the Salt Palace Convention Center in Salt Lake City, Utah, USA,
August 3-6, 2010, Booth #155-219.
Additional information and videos illustrating OutDry's innovative
processes can be found here.
About Columbia Sportswear Company
Columbia Sportswear Company is a leading innovator in the active
outdoor apparel, footwear, accessories and equipment markets. Founded in
1938 in Portland, Oregon, Columbia products are sold in more than 100
countries and have earned an international reputation for innovation,
quality and performance. Columbia products feature technologies and
designs that protect outdoor enthusiasts from the elements, increase
comfort, and make outdoor activities more enjoyable. In addition to the
Columbia brand, Columbia Sportswear Company also owns outdoor brands
Mountain Hardwear, Sorel®, Montrail®, and Pacific Trail®. To learn
more, please visit the company's websites at www.columbia.com,
www.mountainhardwear.com,
www.sorel.com,
and www.montrail.com.
About Nextec S.r.l./OutDry:
With a great passion for innovation in membrane lamination
technology, OutDry is dedicated to making products dryer, lighter and
more comfortable for all outdoor enthusiasts. The company is based in
the North of Italy with an operations branch in China. For more
information, visit: http://www.outdry.com/ENG_home.html.
Forward-Looking Statements
This press release contains forward-looking statements within the
meaning of the federal securities laws, including statements regarding
the expected completion of an acquisition, anticipated results,
marketing efforts, and planned investments in future periods. Actual
results could differ materially from those projected in these and other
forward-looking statements. The company's expectations, beliefs and
projections are expressed in good faith and are believed to have a
reasonable basis; however, each forward-looking statement involves a
number of risks and uncertainties, including those set forth in this
press release, those described in the company's Annual Report on Form
10-K for the year ended December 31, 2009, under the heading "Risk
Factors," and other risks and uncertainties that have been or may be
described from time to time in other reports filed by the company,
including reports on Form 8-K, Form 10-Q and Form 10-K. Potential risks
and uncertainties that may affect our future revenues, earnings and
performance and could cause the actual results of operations or
financial condition of the company to differ materially from those
expressed or implied by forward-looking statements in this release
include: our ability to complete the acquisition and integrate new
operations into our business; our ability to maintain, protect and
effectively commercialize acquired technologies; our reliance on product
acceptance by consumers; our dependence on independent manufacturers and
suppliers; the effectiveness of our sales and marketing efforts; and
intense competition in the industry, which we expect to increase. The
company cautions that forward-looking statements are inherently less
reliable than historical information. We do not undertake any duty to
update any of the forward-looking statements after the date of this
release to conform them to actual results or to reflect changes in
events, circumstances or our expectations. New factors emerge from time
to time and it is not possible for the company to predict all such
factors, nor can it assess the impact of each such factor or the extent
to which any factor, or combination of factors, may cause results to
differ materially from those contained in any forward-looking statement.
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Columbia Sportswear
Investors:
Ron Parham, 503-985-4584
rparham@columbia.com
Investor
Relations and Corporate Communications
or
Media:
Scott
Trepanier, 503-985-4183
strepanier@columbia.com
Public
Relations
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