RIP CURL SOLD
Kathmandu buys famed Torquay surf brand
TORQUAY surf brand Rip Curl has been bought by Kathmandu in a $350 million deal that will create a billion-dollar outdoor adventure company.
The acquisition will end 50 years of private ownership for Rip Curl, which was founded by surfer friends Brian Singer and Douglas Warbrick at Bells Beach in 1969.
Mr Singer and Mr Warbrick, who will receive $31 million in Kathmandu shares as part of the deal, said in a statement that selling was an “emotional event for us”.
“Surfing and the surf industry has been an integral part of our lives for more than 50 years,” they said.
“We realise, Rip Curl, our baby, has grown into an adult recognised all over the planet and we are proud that we have created one of the world’s great brands.”
Kathmandu said the acquisition would give the duallisted retailer “seasonal balance”, diversifying its winter/outdoor portfolio with Rip Curl’s summer/beach offerings.
Rip Curl chief executive Michael Daly said there were strong parallels between the two companies.
“Both companies thrive on creating high-quality, functional products for outdoor enthusiasts, surfers and beach goers around the world,” Mr Daly said.
“Bringing them together will build on our respective strengths across product, marketing and distribution channels.”
Rip Curl offers highly technical wetsuits, boardshorts and other accessories.
It has a presence in Australia, New Zealand, South-East Asia, Brazil, North America and Europe. The company wants to expand within Europe and the US.
The deal will give Kathmandu Group a combined global footprint of 341 owned stores, 254 licensed stores and more than 7300 wholesale clients.
Rip Curl will retain operational ownership of its respective businesses, with Mr Daly continuing as chief executive and reporting to Kathmandu chief executive Xavier Simonet from its headquarters in Torquay.
But Kathmandu investors must first tick off the deal at a shareholders meeting scheduled for October 18.