ASB MAGAZINE: It’s been two weeks since it was announced Kathmandu had agreed to buy Rip Curl for A$350m. Formed over 50 years ago, and fiercely independent since 1969, the founders of Rip Curl have finally decided to cash in and hand over the reins.  After listening to the Conference Call with Kathmandu, we dissected the deal for our Professional Edition subscribers. While the deal metrics look appealing for shareholders of both businesses and assuming it is approved by Kathmandu shareholders on October 18th,  Claw and Brian will cash a nice cheque, which is thoroughly deserved after 50 years of hard work. We reached out to the industry to get their immediate reaction to the deal, here’s what you had to say about the news.

 

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Do you have a special message for Rip Curl Founders?

 

I am really stoked for Brian, Claw and their families. To say they have well earned a payday, is an understatement. More so they should be super proud of what they created and the legacy they have left and the massive influence and contribution they have made to fellow surfers lives globally. Also, specificity, Brian and Claws impact on Torquay is so significant, and is so great, and deserves a massive thank you! Michael Di Sciascio– Strapper

 

I’m am really happy for Brian and Claw. They have built an incredible brand, been amazing for  our sport and industry and I believe they thoroughly deserve to be rewarded. Our business certainly wouldn’t be what it is today without Rip Curl being a big part of it over the years. I thank them and wish them all the best moving forward. Andrew Lindsay – Coopers

 

I’m sure their first thoughts would be with the staff and taking care of them, and that appears to be exactly the case. Dougal Walker – Former Volcom AUST/NZ GM

 

As a former employee of Rip Curl, a big part of working there was Brian and Claw. Their presence inspired me as I’m sure they have inspired anyone who has worked there. I feel this major part will be lost, the soul, the last of the big three. It’s all just business now. Chase the numbers, get the numbers. I hope the soul isn’t gone but it happened at Billabong and Quiksilver without Gordon, Greeny and Lawro. Call me old fashioned. I respect Brian and Claws decision. Hats off to them.What a great achievement. So glad I had the opportunity to work there.  Mark Eymes (Australian Surfer HQ and Rip Curl Rep 80’s)

 

Brian and Claw have worked hard for over fifty years to build Rip Curl into a successful brand and they deserve this reward. Many of the key staff and management have assisted in making this dream come true and it’s a great day for all and we wish them the very best for the future.  Andrew Flitton CEO XTM

 

I wasn’t surprised and felt quite happy for the Rip Curl founders that they had found a purchaser they were comfortable and could retire with reasonable confidence that their brand was in good hands. From what I’ve read they passed up other and perhaps more lucrative offers to go with a company they felt would respect the brand, it’s people and heritage. It does strike me as the end of an era, with all the major surf brands now in the hands of non-surfers so it will be interesting to see how this all plays out in the longer term. Tim Baker Author of The Rip Curl Book

 

I’ve obviously got a lot of respect and admiration for Brian, Claw and so many of the wonderful mentors I worked with in my 12 years at Rip Curl. I am stoked that with this sale they got an outcome that rewards their hard work in business and for their role in surfing globally. I am sure Rip Curl will continue to thrive into the future and hope the founders enjoy some well-earned time in the surf.  Dane O’Shanassy Patagonia Country Director | Australia & New Zealand

 

What operational changes do you expect from the merger?

 

Very obviously some great synergies and opportunity’s. From what I’m hearing the main drivers are to use Rip Curls infrastructure in the US and European markets to expand the Kathmandu brand. But once again time will tell. Until any changes in Australia start to affect our business, I won’t be making any drastic changes.  Andrew Lindsay – Coopers

 

There are many opportunities for each of the businesses to apply their expertise from improved retail, wider distribution, efficiencies and category growth. Both businesses are profitable and well-funded so there’ll also be great opportunities for geographical growth. Surf and Outdoor have many synergies, the understanding of brand lifestyle and culture which should be a win for both businesses and their management.  Andrew Flitton CEO XTM

 

The usual operational changes will occur. Avoid duplication where possible and then watch people having to make themselves accountable.  Mark Eymes (Australian Surfer HQ and Rip Curl Rep 80’s)

 

Do you think the sale price represents fair market valuation?

 

They deserve the highest and best price achievable. Rip Curl aren’t going broke so they shouldn’t be giving it away!    Michael Di Sciascio– Strapper

 

On face value seems like a solid number. From where I sit, they deserve it.  Andrew Lindsay – Coopers

 

Price sounds reasonable for the times.  Mark Eymes (Australian Surfer HQ and Rip Curl Rep 80’s)

  

It’s hard to say without all the details but it certainly seems like a good fit and a good deal. It’s their baby that’s and that’s why it’s taken so long to sell. They obviously wanted to find it in the right hands.  Dougal Walker – Former Volcom AUST/NZ GM

  

Do you agree there are synergies for both brands both summer and winter ?

 

Stay tuned for the synergies. I’m not so sure. Mark Eymes (Australian Surfer HQ and Rip Curl Rep 80’s)

 

Time will tell. I’m a little nervous but at the end of the day Rip Curl is a solid, profitable brand so ‘if it isn’t broken don’t try and fix it’. Andrew Lindsay – Coopers

 

I think so. I don’t have any great insights to Kathmandu’s business but on appearances they seem like a good fit. RipCurl will give them greater representation in key international markets and I imagine greater leverage/economies of scale with suppliers and retailers. I think the most obvious comparison is Vans in the hands of VF Corp. They have been able to provide the back end benefits while preserving the integrity and core red of Vans and hopefully Kathamandu can do likewise.   Tim Baker Author of The Rip Curl Book

 

Final Words;

I’d say firstly congratulations on guiding the brand for 50 years, which really is a monumental achievement, and on a personal level thanks for entrusting me with documenting their journey in The Rip Curl Story. It was great to see them hold their line and stick to core values while everyone else was selling out and cashing up. I’d say, be prepared for a sense of loss and melancholy too as it really has been their life’s work and will leave a significant void in their lives I imagine, no matter how pleased or relieved they are with the sale. I think Kathmandua would be wise to keep them closely identified with the brand going forward, again, a bit like Steve Van Doren at Vans, who continues to act as a kind of ceremonial figure head. Claw in particular has been the keeper of the soul or spirit of the brand for so long and that can’t be under-valued. But I hope they can enjoy their retirement well-satisfied with a remarkable innings.   Tim Baker Author of The Rip Curl Book