Abu Dhabi-based investment vehicle Royal Group has acquired a controlling stake in material science and apparel brand Pangaia, the company said Thursday.
The financial terms of the deal were not disclosed.
Pangaia launched just ahead of the pandemic and enjoyed an initial explosion of success, as lockdown-bound consumers snapped up its brightly coloured tracksuits.
But the heat around the brand swiftly faded. Sales slid from a peak of $76 million in 2020 to $37.1 million in 2022, the last year for which figures are available. The company has also struggled to deliver on its broader vision to use its products as a launchpad for climate-friendly innovations that could then be delivered to the wider industry.
In a press release, Royal Group said the acquisition reflects its vision to partner with “forward-thinking ventures that embody innovation and social impact.” The conglomerate led by Abu Dhabi-royal Sheikh Tahnoon bin Zayed al Nahyan has holdings in a diverse portfolio of companies. It said it would take a “hands-on” approach to support expanding the reach of Pangaia’s material science efforts.
The investment marks a “significant milestone” for the brand, co-founder and former influencer Miroslava Duma said in the release. Royal Group’s “commitment to Pangaia’s mission and expertise in driving sustainable growth make them the perfect strategic partner,” she added.
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Can Pangaia Be More Than a Loungewear Brand?
After swinging to an operating loss of $41 million in 2021, the buzzy fashion start-up has stabilised and remains focused on its ambition to build a materials science business.