Claiborne to sell prAna brand

NEW YORK Liz Claiborne announced today that it has agreed to sell its prAna brand to prAna Living, a company formed by prAna's management team and Steelpoint Capital Partners for a purchase price consisting of a $36.5 million cash payment payable at closing and a contingent cash payment of up to $4 million based on actual 2008 EBITDA. Liz Claiborne expects to realize net cash proceeds of $18.1 million at closing as a result of the sale, after settlement of a contingent earnout obligation of $18.4 million payable to the prAna founders in connection with the 2005 acquisition of prAna.

Liz Claiborne said expects the sale to generate net cash proceeds of $18.1 million at closing as a result of the sale, after settlement of a contingent earnout obligation of $18.4 million payable to the prAna founders in connection with the 2005 acquisition of prAna.

William McComb, ceo of Liz Claiborne, commented, "We were pleased with the interest that prAna generated with potential buyers. Steelpoint is the right partner to help prAna realize its potential and flourish as a brand."

prAna is a San Diego, Calif.-based company that specializes in yoga and outdoor/active lifestyle apparel and accessories.