- Kathmandu is purchasing Rip Curl for $350 million
- With Rip Curl added to the books Kathmandu will generate NZ$1 billion in revenue
- Purchasing Rip Curl assists Kathmandu's international expansion
- Shares in Kathmandu are currently trading at $2.79 apiece
Outdoor apparel retailer Kathmandu is purchasing Aussie surf brand Rip Curl for $350 million, as announced to the market this morning.
Adding Rip Curl to the books makes Kathmandu a NZ$1 billion company and increases its international presence.
All together the group will operate 341 owned retail stores, 254 licensed stores and over 7300 wholesale opportunities globally.
The Rip Curl brand designs and manufacturers its apparel and surfing equipment. It has its own retail stores to stock and distribute its products.
The Aussie surf brand, which started up in 1969, is sold internationally across New Zealand, North America, Europe, South East Asia and Brazil.
According to the company, purchasing Rip Curl adds a seasonal balance to its portfolio, with Kathmandu's winter and outdoor products and Rip Curl's summer and surf wear.
For Kathmandu to make the purchase it is looking to raise NZ$145 million from shareholders. In return, it expects during the 2020 financial year shareholders earnings per share will be up 10 per cent.
Rip Curl's CEO Michael Daly will remain in his position and is looking to buy shares in Kathmandu.
"We are excited about the opportunity to partner with another iconic Australasian brand that shares our vision of creating high quality functional products for outdoor and action enthusiasts," he said.
Kathmandu has requested a trading halt until Friday. Shares in the company are currently worth $2.79 apiece.