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Vera Bradley announced Thursday it agreed to pay $75 million to buy a majority stake in Creative Genius, the owner of Pura Vida, an online seller of handmade bracelets.
“Pura Vida is a highly differentiated lifestyle brand with uniquely strong products and amazing consumer loyalty,” Vera Bradley CEO Robert Wallstrom said in a statement. “We have many similarities in our value-based cultures, in our authentic brands, and in our devoted customer bases and emotional customer connections.”
Pura Vida reported net income of $3.8 million on revenue of $68.3 million in 2018.
The La Jolla, California-based company was co-founded in 2010 by Griffin Thall and Paul Goodman. The company sells colorful string or braided bracelets that start from $6 each. The jewelry is made by artisans around the world and are sold online and in retail stores.
The deal’s consideration is subject to potential price adjustments and as much as a $22.5 million earnout consideration if the company reaches certain performance targets this year.
Vera Bradley has the right to buy the remaining 25% stake in the company five years after the deal closes. The transaction is expected to be completed in the second quarter.
Vera Bradley shares were up nearly 2% in trading Thursday on the news. The stock, which has a market value of $415 million, has gained more than 40% since the start of the year.