Close
 

Kathmandu will buy Rip Curl for $368 million

  • News
  • October 1, 2019
  • The Register team
Kathmandu will buy Rip Curl for $368 million

Listed Kiwi outdoor goods retailer Kathmandu has agreed to buy Australian surfwear apparel company Rip Curl for $368 million.

The acquisition will create a billion-dollar outdoor and action sports company anchored by the Kathmandu and Rip Curl brands, and provide Kathmandu with the opportunity to diversify its geographic footprint, channels to market and seasonality profile.

The post-merger company will have a combined footprint of 341 owned retail stores, 254 licensed stores and over 7300 wholesale doorways.

Rip Curl’s summer and beach focus will provide balance to Kathmandu’s focus on winter and outdoor goods. The two companies also have mutually beneficial opportunities in wholesale, where Kathmandu can leverage Rip Curl’s expertise, relationships and global network to help expand its wholesale business; and in online, where Rip Curl can leverage Kathmandu’s online capabilities to accelerate growth in its underpenetrated online channel.

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 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. The balance of the transaction will be funded from new senior secured debt facilities. 

Founded in 1969, Rip Curl is a designer, manufacturer, wholesaler and retailer of surfing equipment and apparel. It operates a multichannel model through its global presence across Australia, New Zealand, North America, Europe, Southeast Asia and Brazil.

Rip Curl’s chief executive, Michael Daly, will continue to lead Rip Curl from its headquarters in Torquay and will report to Xavier Simonet, Kathmandu’s CEO. 

"“There are strong parallels with both Rip Curl and Kathmandu," Daly says. "Both companies thrive on creating high quality, functional products for outdoor enthusiasts, surfers and beach goers around the world. Both brands are also from the same part of the world – Australia and New Zealand. Bringing them together will build on our respective strengths across product, marketing and distribution channels."

“It will be a new world for all of us after 50 years of private ownership, and our entire crew would like to thank the Rip Curl founders [Brian Singer and Doug “Claw” Warbrick] for everything they have done for surfing over the years,” 

Of the acquisition, Simonet says: “This is a fantastic opportunity for Kathmandu to grow and diversify. The acquisition of Rip Curl transforms Kathmandu into a NZ$1.0 billion outdoor and action sports company, anchored by two iconic global Australasian brands. The combination of Kathmandu, Oboz and Rip Curl achieves diversification in product, channel, geography and seasonality, and creates a platform for the acceleration of our brands’ global expansion into new channels and markets. Importantly, there is also strong cultural alignment between our brands, underpinned by a shared focus on quality, innovation and sustainability.” 

The acquisition is expected to be complete by the end of 2019. It comes after Kathmandu's purchase of US footwear company Oboz in March 2018 for $NZ103.6million.

This is a community discussion forum. Comment is free but please respect our rules:

  1. Don’t be abusive or use sweary type words
  2. Don’t break the law: libel, slander and defamatory comments are forbidden
  3. Don’t resort to name-calling, mean-spiritedness, or slagging off
  4. Don’t pretend to be someone else.

If we find you doing these things, your comments will be edited without recourse and you may be asked to go away and reconsider your actions.
We respect the right to free speech and anonymous comments. Don’t abuse the privilege.

 

Gem Retail Hotlist: Benjamin Black and regional retail

  • News
  • December 12, 2019
  • Sarah Dunn
Gem Retail Hotlist: Benjamin Black and regional retail

Our 'Best provincial retailer: South Island' award was hotly contested in the Gem Retail Hotlist, but in the end, it was Nelson jeweller Benjamin Black that won. Find out more about this boutique craft jeweller.

Read more
 
 

The retail diary: December / January

  • News
  • December 11, 2019
  • Sarah Dunn
The retail diary: December / January

The Register and NZ Retail team has rounded up retail-relevant events and important dates for December and January.

Read more
 
 

Kiwis predicted to spend more on Christmas than Australians

  • News
  • December 11, 2019
  • Makayla Wallace-Tidd
Kiwis predicted to spend more on Christmas than Australians

New research has found that Kiwis will be spending up large on Christmas in 2019 while Australians will be taking a more conservative approach to the Christmas budget. However, Kiwis are still focused on trying to lower their Christmas spending, and retailers have been warned to keep pricing strategies transparent.

Read more
 

Social scoreboard

Zavy and The Register have worked together to create a scoreboard that compares how the top 25 traditional media advertising spenders in New Zealand have performed on social media over the past 30 days, updated in real time.

 
topics
Concept to closet
Business coverage of New Zealand Fashion Week.
Regional rollercoaster
What does retail look like in 2019 for ...
Town centres
A positive retail environment over the past 12 ...
Amazon Arrival
Keeping up with all things Amazon as it ...
The Retail Yearbook 2017
As we battle our way through the busiest ...
The future is bright
We spoke with four retailers in their twenties ...
Hospitality enhancing retail
Some think food and integrated hospitality offerings will ...
Spotlight on signage
At first glance, the humble in-store sign might ...
Red Awards 2016
The Red Awards for retail interior design celebrate ...
Auckland Unitary Plan
Auckland is changing. The Unitary Plan will decide ...
How to open a store
Sarah Dunn considers what it would take to ...
All things to all people
Kiwi retailers share their omnichannel strategies.
Rising stars
Retail's top young achievers.
Delivering on your promises
The sale isn't over until your item is ...
Retail in heartland New Zealand
Retailers keep the regions pumping, but how strong ...
Sisterhood
Women in retail help one another. We spoke ...
The changing face of retail
Shifting demographics are creating big changes in New ...
The retail yearbook
With the help of experts in the retail ...
Retail rogues
We put the spotlight on staff training. Jai ...
Here come the giants
Topshop has arrived in Auckland’s CBD, David Jones ...
From retail to e-tail
Ecommerce has become part of the way mainstream ...
Loyalty in the digital age
How are retailers maintaining loyalty? Sarah Dunn, Elly ...
Window shopping: A spotlight on social media
Sarah Dunn and Elly Strang look at how ...
The Innovators | In partnership with Spark Business
Technology is rapidly changing the retail industry as ...
 
Sponsored content

Christmas music: to carol or not to carol

It’s that time of year again when retailers across the country ask themselves whether they should start playing Christmas music.

 
 

Gem Retail Hotlist: Allbirds' Tim Brown is our Retail Visionary

  • News
  • December 11, 2019
  • Catherine Murray
Gem Retail Hotlist: Allbirds' Tim Brown is our Retail Visionary

In the Gem Retail Hotlist, 'Retail Visionary' is one of our most special awards. This year we awarded it to Tim Brown of Allbirds. Here's the scoop on this innovative sneaker brand.

Read more
 
News

From concept to closet: New Zealand’s apparel industry in 2019

Held at the end of August, New Zealand Fashion Week is an annual focal point for local designers and those interested in their products. But ...

 
Next page
Results for
Topics
Jobs
About us.

The Register provides essential industry news and intelligence, updated daily. And the digital newsletter delivers the latest news to your inbox twice a week — for free!

©2009–2015 Tangible Media. All rights reserved.
Use of this site constitutes acceptance of our Privacy policy.

Advertise
The Register

editor@theregister.co.nz

Content marketing/advertising? Email anita.hayhoe@icg.co.nz or call 022 639 3004

View Media Kit

}