Kathmandu, listed on both the Australian and New Zealand stock exchanges, said yesterday that the combined businesses would create a $1billion global outdoor and action sports company anchored by two iconic Australasian brands.
The acquisition will be funded through debt, a placement of $145million and a further $32million of Kathmandu shares to founders and surfing buddies Brian Singer and Douglas Warbrick, as well as Rip Curl chief executive Michael Daly.
Rip Curl, founded in Bells Beach, Australia, in 1969, manufactures and sells surf products from wetsuits and swimwear to equipment and accessories, through outlets in Australia, New Zealand, North America, Europe, Asia and Brazil.
Kathmandu chief executive Xavier Simonet said the acquisition offered a ''fantastic opportunity'' for Kathmandu to grow and diversify in product, channel, geography and seasonality.
''Importantly there is also strong cultural alignment between our brands, underpinned by a shared focus on quality, innovation and sustainability,'' he said.
Kathmandu was founded in Christchurch in 1987 by Jan Cameron and John Pawson.
Ms Cameron sold the company to a private equity consortium for $275million, in 2006.
Mr Pawson, who had sold his stake in the business in 1997, died after a mountain climbing accident on Mt Aspiring in 2008.
The expanded company will have 341 owned retail stores, 254 licensed stores and more than 7300 wholesale doorways globally.
Mr Daly will continue to lead the company from its Torquay head office.
Kathmandu said the transaction was expected to deliver growth in earnings per share of more than 10% for Kathmandu shareholders for its 2020 financial year.
The transaction will require shareholder approval at a special meeting of shareholders to be held in Sydney on October 18, the company said.
