Sept. 22 (Bloomberg) -- Gap Inc., the largest U.S. clothing retailer, agreed to acquire Athleta Inc. for about $150 million in cash to increase Gap's offer of women's athletic apparel.

The acquisition will be completed in the ``next few weeks,'' Louise Callagy, a Gap spokeswoman, said by telephone today.

The women's sports and active clothing industry is worth $31 billion, the clothing company said in the statement. Canada's Lululemon Athletica Inc. more than doubled its second-quarter profit, bolstered by growing demand for yoga apparel.

``The women's athletic apparel segment is a very compelling merchandise category,'' Richard Jaffe, an analyst with Stifel Nicolaus & Co., said in a research note. The acquisition would help Gap ``gain easy entry into this attractive market.'' He recommends holding Gap shares.

Athleta, founded in 1998 and based in Petaluma, California, currently sells its products through catalogs and on its Web site. Gap plans to sell the clothing online along with the Old Navy, Banana Republic, Gap and Piperlime brands. Products bought online from any of the stores can be shipped together, San Francisco-based Gap said today in an e-mailed statement.

Gap, which runs more than 3,100 stores, fell 27 cents, or 1.4 percent, to $18.81 at 4:15 p.m. in New York Stock Exchange composite trading before it announced the purchase.

To contact the reporter on this story: Amy Eagleburger in New York aeagleburger@bloomberg.net.

Last Updated: September 22, 2008 19:39 EDT