By Michael Hoyer

March 26, 2003 Columbia Sportswear Company plans to purchase Mountain Hardwear, Inc. next week, in a definitive merger agreement worth $36 million.

If Mountain Hardwear shareholders approve the agreement, the high-end outdoor apparel and gear manufacturer will become a stand-alone subsidiary of Columbia Sportswear Company, but will retain its executive leaders, 65 employees, and its home base in Richmond, California.

"It's feeling like a good match," says Mountain Hardwear's Public Relations Director Paige Boucher, "The consumer really shouldn't notice any changes. Columbia doesn't want to alter [the product] at all. You won't see us going into the middle of the market level and you won't see their name on our products."

A small group of outdoor enthusiasts with experience in the gear industry formed Mountain Hardwear in 1993 with, according to the company's mission statement, "a healthy disrespect for the business types who were saying it couldn't be done." They have since become known for their high-end outdoor equipment (most notably tents and sleeping bags, clothing, and accessories) and command loyalty among serious mountaineers.

" By acquiring Mountain Hardwear, we continue to build a dynamic portfolio of strong outdoor brands," says Tim Boyle, CEO of Columbia Sportswear and son of 78-year-old Columbia matriarch and Chairman Gert Boyle. "We are committed to upholding Mountain Hardwear's brand integrity and authenticity for the benefit of its intensely loyal consumer base. Mountain Hardwear will continue to operate as an independent brand."


Columbia Sportswear Company was founded in 1938 as a small, family-owned hat distributorship. Today Columbia Sportswear is the lead-selling skiwear brand in the US and distributes its outerwear, sportswear, footwear, and accessories internationally.

By joining forces, Columbia Sportswear—which raked in $816.3 million in 2002—hopes to boost Mountain Hardwear's sales from last year's $31.4 million in unaudited revenue to $100 million over five years.

Mountain Hardwear's president, Jack Gilbert, is optimistic about the changes to come. "We needed a corporate partner who agreed that pushing the limits of what is technically possible is the essence of our success," he stated in a press release following the merger announcement. "This transaction marks a significant milestone in the development of our business and gives us the opportunity to continue building the Mountain Hardwear brand on a global scale."

After the merger, Mountain Hardwear may expand its line to include footwear and backpacks.

Employees of both companies seemed pleased with the agreement, which is slated to close on March 31. "Columbia doesn't want to mess with us," says Mountain Hardwear's Boucher, "they just want to help us grow."