Alo Yoga’s parent company Color Image Apparel is looking at a potential investment that would value it at about $10 billion, according to a Reuters report citing sources familiar with the matter.
Alo’s founders Danny Harris and Marco DeGeorge have engaged investment bank Moelis to provide advice to the company on its options, which includes possibly selling a stake in the high-end athletic apparel brand, Reuters reported.
Potential investors reportedly include private equity firms and sovereign wealth funds and they have been in talks about a deal where they would receive preferential returns or debt-like protections.
No transaction structure has been agreed upon and it is possible that Alo may decide against any deal, the unidentified source told Reuters.
Alo and Moelis declined the publication’s requests for comment.
Alo, an acronym for air, land, and ocean, was founded in Los Angeles, California in 2007 and has been popularized by celebrities including Hailey Bieber, Gigi Hadid, Taylor Swift, and Kendall Jenner.
Initially focused on apparel, the brand has expanded into footwear, beauty, and wellness, and many of its brick-and-mortar store locations include yoga studios offering classes.
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