Smart Sheep in the TimberLand.

The Outdoor Industry gets even a little smaller after Timberland announced it will buy Smartwool for 82 Million Dollars this week. The deal will be paid via timberland's existing cash balances as well as a some short-term borrowing.

SmartWool will stay in Steamboat Springs, Colorado and will operate as a wholly-owned subsidiary of The Timberland Company under the leadership of Chip Coe, SmartWool's president.

SmartWool's 2005 revenues are anticipated to be approximately $42 million excluding sales of Timberland footwear with SmartWool linings (which they partnered in 2005 to develop and create). Timberland anticipates this transaction will add two to three cents to its earnings per share in 2006, with benefits weighted toward the second half of the year.

Chip Coe explained the "We are very excited to expand our relationship with Timberland. We are passionate about our brand. Timberland's brand building heritage, operational expertise and commitment to community will enable SmartWool to better serve our loyal and growing consumer base through expanded offerings of socks, apparel and accessories to reach our full potential as part of the Timberland organization. Timberland's extraordinary commitment to social responsibility is also a great fit with our SmartPrint initiative."

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