Australian maker of travel and adventure outdoor apparel Kathmandu Holdings Ltd. has agreed to acquire 100% of surfwear-maker Rip Curl Group Pty. Ltd. for A$350 million, according to an Oct. 1 filing to the New Zealand Stock Exchange.
Rip Curl, which was founded in Bells Beach in the Australian state of Victoria in 1969, designs, manufactures and sells surfing apparel and equipment in Australia, New Zealand, North America, Europe, Southeast Asia and Brazil.
Kathmandu will fund the deal through a fully underwritten 1:4 pro rata accelerated entitlement offer to raise NZ$145 million and placement of about NZ$32 million of new Kathmandu shares to Rip Curl's founders and CEO Michael Daly who have voted to receive some of the consideration for the acquisition in Kathmandu shares. Kathmandu will pay the remaining balance of A$220 million from new senior secured debt facilities.
The merger is expected to create a global outdoor and action sports company with revenue of NZ$1 billion in excess and a combined footprint of 341 owned retail stores, 254 licensed stores and more than 7,300 wholesale doorways globally.
Upon closing, Daly will continue to lead the company from its headquarters in Torquay, England. He will report to Kathmandu CEO Xavier Simonet.
As of Sept. 30, US$1 was equivalent to NZ$1.60.
