Ergo baby carriers is buying rival Baby Tula carriers for $73.8 million, according to a joint statement issued by the companies today.
Baby Tula is based in San Diego and reportedly sold $24.8 million worth of baby carriers in 2015 (with a profit of $13.1 million in EBITDA). Ergo says it plans to keep each brand intact, with Tula’s offers remaining in San Diego while Ergo is based in Los Angeles. According to a press release:
Margaret Hardin, CEO of ERGObaby, stated, “By combining ERGObaby’s broad portfolio of carriers with Baby Tula’s wrap conversions, slings, blankets, as well as toddler & standard carriers, we believe we are offering babywearing parents the best choices and assortment for their growing families. We are excited to work with the Baby Tula team in achieving our common goal of building a global community of confident parents with smart, ergonomic solutions that enable and encourage bonding between parents and babies.”
It will be interesting to see how the merger affects Tula’s following, which as one blogger called it, the “The Incredible & Disturbing Mommy Cult of Tula.” Yes, there is an apparently black market for resale Tula’s that go for as much as $4000. For a baby carrier.
The Ergo/Tula merger comes in the heels of another acquisition in the baby carrier market when Boba bought Beco last month. (Beco is most famous for their Gemini carrier). Both companies are headquartered in Boulder, CO. That merger hit a sour note when Beco announced it was discontinuing the the popular Beco Soleil carrier shortly after merger, to the disappointment of some baby wearing fans.
Ergo is owned by Compass Diversified Holdings, a venture capital firm that owns several consumer brands including Sterno and CamelBak.