Judging by yesterday's trading action in shares of sporting goods and apparel company Russell (NYSE:RML) -- the shares were about flat on volume not terribly different than its recent average, though it was somewhat higher -- it doesn't appear that too many folks are actually watching the doings at this company despite its stable of well-known brands such as its namesake, Bike, Jerzees, and Spalding. Still, its Monday morning announcement of plans to buy Brooks is an example of a company in a mature industry taking textbook steps to sustain growth.

Russell agreed to buy Brooks, which makes running shoes and apparel, for $115 million in cash to be funded by its credit line. Management projections have Brooks turning in 2003 sales of $95 million, and the deal, slated to close early next year, is seen boosting Russell's earnings right away.

Strategically, it's an interesting if not financially earthshaking move. For one, more than 90% of Russell's 2003 revenues were domestic, while about a quarter of Seattle-area Brooks' are international. Russell has a stated goal of boosting its international business, and this is one way to do it. From a product perspective, meanwhile, Brooks is in something of a new sector for Russell: It sells a lot of shoes, while Russell traffics heavily in apparel and equipment.

Russell is profitable, growing -- albeit slowly -- and cash flow positive. Given such a dynamic, a company has little choice but to look to acquisitions and new markets. (In 2004 it bought Huffy's Huffy Sports operation and has purchased several other brands and businesses in recent years, among them the aforementioned Bike and Spalding.) All this adds up to a business that has managed to outperform the S&P 500 over the last five years despite operating in a fragmented, competitive business.

Does it add up to future outperformance? Management is projecting 2005 EPS growth in the range of about 7% to 14% over 2004 levels based on published estimates and company guidance, leaving it looking more or less fairly valued at last night's close just shy of $19 -- and so the investors who purchased in advance of generally upbeat Q3 earnings have been rewarded in the short term. If management can continue to integrate its buys and grow profits, this looks like a company worth holding.

Fool contributor Dave Marino-Nachison does not own shares of any of the companies mentioned.