ASB MAGAZINE: More than 99.9 per cent of Kathmandu shareholders voted unanimously today to approve the acquisition of Rip Curl at a special shareholder meeting. As we reported here and dissected here Kathmandu’s intention is to retain Rip Curl’s brand identity and cultural values, allowing both businesses 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.
“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 diversity 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,” said David Kirk
Today’s announcement is largely procedural but a strong vote of confidence by shareholders also reinforces the shared vision of both brands. It’s also supportive of the surf industry’s reaction to the sale which we reported here
Standby for our exclusive interview with Founders Brian Singer and Doug Warbrick which drops Monday.
The acquisition’s completion is expected to occur on 31 October 2019.
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