Sporting goods company K2 Inc. said Wednesday that it acquired outdoor-apparel brand Ex Officio from privately held Orvis Co. in an all-cash deal.
Financial terms weren't disclosed.
The purchase is the latest in a string of recent acquisitions for Carlsbad, Calif.-based K2, which in the last two years has moved from being primarily a ski and snowboard maker to a seller of sporting gear for all seasons. The company recently snapped up baseball equipment makers Rawlings Sporting Goods Co. and Worth Inc. and paintball firm Worr Game Products.
Buying Ex Officio is K2's first significant move into the apparel business, said company spokesman Dudley Mendenhall. And it's not expected to be the last. Mendenhall said the company was looking for more outdoor clothing brands to acquire.
Adding apparel is "a natural synergy with our sporting goods lines," he said.
Ex Officio markets its clothing to outdoor aficionados and adventure travelers who want state-of-the-art gear, including their duds. Its shirts, slacks, hats and socks carry such features as insect repellent and anti-staining Teflon finish.
Founded in Seattle in 1987 by Rick Hemmerling, Ex Officio was acquired by the 150-year-old hunting and fishing retailer Orvis in 2000.
Hemmerling, who has been serving as Ex Officio's president and director of product development, will remain with the company, K2 said.
Mendenhall declined to disclose Ex Officio's annual sales, except to say they are less than 10% of K2's $719 million.
The deal is expected to be neutral to earnings per share in 2004, K2 said, because of the seasonality of Ex Officio's product lines, which include clothing for fishing, kayaking and trekking.
The announcement was made after the market closed. K2 shares rose 14 cents to $14.77 on the New York Stock Exchange.