NIWOT  - Crocs Inc. (Nasdaq: CROX) said today it would buy Bite Footwear brand for $1.75 million in cash, plus a potential earn-out of up to $1.75 million based on Bite hitting certain earnings targets over a three-year period.

Bite Footwear makes shoe and sports sandals. Founded in 1996, Bite has introduced the first sports sandal with a removable insole, the first bio-mechanically correct footwear for fishing and the first dedicated disc golf shoes.

Bite Footwear, based in Redmond, Wash., will operate as Bite Inc., a wholly owned subsidiary of Crocs. Bite Footwear founder Dale Bathum will remain with Bite. The company markets and sells its footwear worldwide in five categories including golf, adventure, healthy lifestyle and water sports.

Similar to Crocs, Bite Footwear uses patented technology. Crocs plans to incorporate its proprietary closed cell resin material, Croslite, into Bite's shoes. In addition, Bite's OrthoSport product line will complement and expand the Crocs RX medical line.

Also, Boulder-based Jibbitz LLC, a wholly owned subsidiary of Crocs, introduced a new line of customizable handbags and messenger bags.

The new bags will be priced between $24.99 and $49.99. Users can custom-design their look with interchangeable bag pockets, straps and bag flaps that flip over to secure the bags. A variety of bag pockets, straps and flaps are available in various colors and unique graphics.

Jibbitz also has more than 25 licensed bag designs, including Superman, Supergirl, Warner Bros.' characters such as the Tazmanian Devil, Tweety Bird and Michigan J. Frog, which feature encrusted rhinestones.