K2 Inc has acquired Ex Officio, a designer and manufacturer of men and women's apparel for the outdoor and adventure travel markets. The company was acquired in an all cash transaction. Due to the seasonality of Ex Officio's(R) product lines, the transaction is expected to be earnings per share neutral in 2004, but accretive in 2005.
Richard Heckmann, Chairman and Chief Executive Officer of K2 Inc., said, “Ex Officio represents the first step in our move to build an outdoor apparel platform that will complement K2's leading sporting goods brands in outdoor, fishing, and water sports. Ex Officio has a well known reputation for innovative and technical design, and it will allow us to bring an important new dimension to our product offerings and brand extensions. We are pleased that Rick Hemmerling, the founder of Ex Officio, will remain to guide the next generation of growth for the brands.”