New Zealand retail giant Kathmandu (ASX:KMD)
has announced its acquisition of iconic Australian surf brand Rip Curl and equity raising.
Under the agreement, Kathmandu will acquire 100% of Rip Curl Group for A$350 million, bringing a 50 year end to privately owned brand.
The transaction will be financed via a fully underwritten 1 for 4 Pro-Rata Accelerated entitlement offer to raise NZ$145 million, and a placement of approximately NZ$32 million worth of new Kathmandu shares to the founders and CEO of Rip Curl who have elected to receive some of the consideration for the acquisition in Kathmandu shares.
Kathmandu has a global presence across North America, Europe, South East Asia and Brazil.
Rip Curl CEO Michael Daly says the company is excited about the opportunity to partner with another iconic Australasian brand that shares their vision of creating high quality functional products for outdoor and action enthusiasts.
Shares in Kathmandu (ASX:KMD)
closed flat at $2.79 yesterday.