NEW YORK — Action-sports titan Volcom, Inc. Wednesday announced its acquisition of Electric Visual Evolution. Volcom purchased the San Clemente, Calif.-based eyewear brand for $25.25 million in cash, due to Electric shareholders upon the closing of the transaction. If Electric achieves certain milestones during the next three years, shareholders will be eligible for an additional $21 million.
Electric, which will be maintained as a wholly-owned subsidiary of Volcom, produces action-sports oriented sunglasses, snow goggles, T-shirts, and other accessories. Kip Arnette, son of Arnette Optical Illusions’ founder Greg Arnette, co-founded Electric in 2000 with former Arnette COO Bruce Beach. The brand has since found homes in many of the action-sports worlds’ most respected retail accounts, and in 2007, achieved net sales of about $23.5 million.
Volcom’s president and CEO, Richard Woolcott, called the partnership “the perfect fit,” in a statement. “Our companies are very much on the same wavelength, sharing similarities in product distribution, marketing efforts and a strong commitment to quality and innovation.”
In other news, Volcom last week lowered its fourth-quarter earnings outlook. The company said it expects earnings of $67 million to $68 million, or 29 cents to 30 cents a diluted share, when it reports final results for the quarter ended Dec. 31. Previously, Volcom expected earnings between $70 million and $73 million, or 30 cents to 32 cents a diluted share. For the same period last year, the company reported earnings of $56.6 million, or 31 cents a diluted share.
Volcom also lowered its expectations for fiscal 2007. The company said it now expects revenues between $266 million and $267 million, or $1.36 to $1.37 a diluted share, versus prior guidance of earnings between $270 million and $273 million, or $1.37 to $1.39 a diluted share.