More than 99.9 percent of Kathmandu shareholders voted to approve the outdoor-wear retailer’s acquisition of surf brand Ripcurl at a special shareholder meeting on Friday.
According to the business, the acquisition’s completion is expected to occur on 31 October 2019 following the vote.
“Rip Curl is an iconic and authentic global action sports brand,” Kathmandu chairman David Kirk said at the meeting.
“Similar to Kathmandu’s core outdoor products category, the surf products market has a stable, committed core customer, with steady growth in participation and spending.
“The acquisition of Rip Curl is an opportunity for Kathmandu to considerable diversify its geographic footprint, channels to market and seasonality profile, and creates a NZ$1 billion outdoor and action sports company anchored by two iconic Australasian brands.”
The acquisition will further broaden Kathmandu’s roster of brands, after it acquired Oboz footwear for $97 million in April 2018.
It also gives the outdoor group a foothold in the South American, Middle East and South African, as well as South-East Asia markets, where neither Kathmandu or Oboz trade.
Kathmandu’s intention is to retain Rip Curl’s brand identity and cultural values, allowing business leaders to retail operational ownership of the business.
Kathmandu initially announced the acquisition in early October, which was funded through a combination of $138 million from institutional investors and $220 million in new debt, as well as the placement of $31 million in new Kathmandu shares to the founders and CEO of Rip Curl.