The Goleta-based parent company of shoe brands Simple and Ugg announced a $120 million bid to buy Irvine-based sandal maker Sanuk USA LLC.
The offer by Deckers Outdoor Corp. includes the purchase of Sanuk and its exclusive licensee C&C Partners Ltd. and could include additional payments based on the company's performance over the next five years.
Sanuk, known for its quirky designs and marketing, makes beach sandals and other shoes.
Buying Sanuk would provide “growth opportunities, particularly within the action sports market where it has a large and loyal customer base of active outdoor enthusiasts,” Deckers Chief Executive and Chairman Angel Martinez said in a statement.
Deckers owns six other casual and outdoor shoe brands, with sales dominated by sheepskin boot brand Ugg.
The company reported sales up 31% to $205 million for the three months through March.
Deckers had a recent market value of $3.5 billion.
Sanuk and its licensing company had combined sales of $43 million last year, according to a release announcing the acquisition.
The deal is expected to close some time in the third quarter.
Sanuk was No. 15 on last year’s Business Journal list of the fast-growing private companies in Orange County.
Deckers’ purchase of Sanuk is the second announced buy of an action sports apparel company in less than a month.
France’s PPR SA announced earlier this month its offer to buy Costa Mesa-based Volcom Inc. for $608 million in a deal also expected to close in the third quarter.
Volcom sells clothes and accessories inspired by action sports, art and music.