In a press release published today, the announcement that ERGObaby will acquire (a.k.a. is buying) Tula Baby came as a surprise to most of us. The release states the definitive agreement includes a purchase price of $73.8 million and is expected to close within the next 45 days.
“For the fiscal year ended December 31, 2015, Baby Tula reported net revenue of approximately $24.8 million and EBITDA of approximately $13.1 million” which probably doesn’t surprise anyone who follows the Tula craze!
Both ERGObaby and Tula announced the sale positively saying “the study and business of babywearing is continually evolving, but even with this transition, rest assured that both Baby Tula and Ergobaby will continue to design and manufacture their products under their current brand names, from our respective headquarters, with all of our same staff. This alliance will not affect the day-to-day operations of either brand, so you can expect the same quality, design, attention to detail, and community support and involvement from both Ergobaby and Baby Tula.”
For fans of Tula or Ergo, this doesn’t sound like bad news that Ergo is buying Tula (it’s not an Ergo Tula merger – both brands stay as-is), but it was surprising, especially following the Beco/Boba announcement not long ago. What do you think?