America Online co-founder Steve Case is pumping $20 million into Broomfield’s Gaiam Inc. – a move company leaders say indicates growing interest in the healthy-lifestyle sector.
“Clearly the market is getting more traction if you have somebody like Steve Case looking at it,” said Jirka Rysavy, chairman and chief executive of Gaiam, a media distributor and retailer of exercise and lifestyle products.
Case’s company, Revolution Living, will purchase 2.5 million newly issued unregistered shares of Gaiam, giving him a 12.5 percent stake in the company, under terms of the deal announced late last week.
Revolution Living is a subsidiary of Case’s investment company, Revolution LLC. The company invests in businesses that appeal to the wants and needs of baby boomers. It holds a majority stake in Denver-based Exclusive Resorts, a high-end vacation club with burgeoning membership. Case is chairman of the company’s board of directors.
Revolution Living also has acquired a controlling interest in spa company Miraval: Life in Balance, and Wisdom Media, which it has rebranded as Lime Media.
Gaiam plans to invest $7 million to acquire a minority interest in Lime. Rysavy and Gaiam president Lynn Powers will join Lime’s board. Case also is expected to join Gaiam’s board.
Gaiam’s investment in Lime will allow the company to further expand its distribution channels, Rysavy said Monday.
Gaiam employs more than 300 people, including 150 in Boulder and Broomfield.
The self-described “lifestyle media” company last month purchased most of the assets of GoodTimes Entertainment, a bankrupt New York media company whose 2,000-title library includes workout names such as Billy Blanks and Richard Simmons, and children’s titles including “Benji” and “Felix the Cat.”
That deal is expected to increase the company’s annual revenue to more than $200 million.
“We are definitely in a growth mode,” Rysavy said, adding that additional acquisitions are in the works.
Staff writer Kristi Arellano can be reached at 303-820-1902 or karellano@denverpost.com.
Gaiam and its new-age products
Yoga lift
Apparatus to assist the yoga headstand, designed to keep the head off the floor.
Qigong DVD
Instructional video in exercise movements to stimulate energy and reduce stress.
Sprayology
Under-the-tongue sprays advertised to promote homeopathic healing.
Source: gaiam.com
