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Vera Bradley To Acquire Majority Ownership Of Pura Vida For $75M

Vera Bradley To Acquire Majority Ownership Of Pura Vida For $75M

The Fort Wayne, Indiana-based bag and luggage company Vera Bradley, Inc. (NASDAQ: VRA) said Thursday it will acquire majority ownership of Pura Vida for $75 million plus up to $22.5 million in earnout consideration.

Vera Bradley signed a definitive agreement to acquire a 75% interest in Creative Genius, which also operates under the name Pura Vida Bracelets, or Pura Vida.

The transaction is expected to close late in Vera Bradley’s second quarter of 2020 and has been approved by the company's board of directors.

Vera Bradley’s revenues totaled $416.1 million for the fiscal year ended Feb. 2, and as of that date, the company has cash and investments totaling $156.6 million.

Pura Vida reported total revenue of $68.3 million, net income of $3.8 million and adjusted EBITDA of $13.7 million for the fiscal year ended Dec. 31. 

Vera Bradley’s existing available cash and investments will fund 100% of the purchase price, the company said. 

Vera Bradley shares closed Wednesday's session down 3.81% at $11.88.

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