Rip Curl, Oboz Owner in Exclusive Talks With Bluestar Alliance

by · WWD
Oboz parent KMD Brands is in exclusive talks with Bluestar Alliance about a possible acquisition of the global outdoor firm.Courtesy of Oboz

KMD Brands Ltd. said on Monday it is in exclusive discussions with Bluestar Alliance about a possible deal for the U.S.-based brand management firm to acquire all KMD shares.

KMD’s disclosure updates a prior announcement on Sept. 23 that it had received interest from a number of parties during its business review. The comprehensive business review was initiated in May and was undertaken with independent advisers Deloitte and Barclay & Co, along with legal advice from Chapman Tripp.

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The agreement with Bluestar, which could be extended to Dec. 23 if certain conditions are met, allows the brand management firm to continue with its due diligence review of KMD.

“There is no certainty at this time that this process will result in receipt of a binding proposal, or that any transaction will ultimately be consummated,” KMD said, adding that the granting exclusivity should not be taken as a recommendation of any transaction by the company’s board.

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KMD is a global outdoor, lifestyle and sports firm. It owns footwear brand Oboz, acquired in 2018, which is based in North America. KMD also owns apparel and travel brand Kathmandu, acquired in 2019 and based in New Zealand, and global surf brand Rip Curl, also acquired in 2019 and based in Australia. All three brands, including KMD, are each certified as a B Corp.

For the full year ended July 31, Oboz posted a 3.8 percent increase in sales to 79.5 million New Zealand dollars. KMD said online sales of the brand saw “strong” year-over-year growth of 11.8 percent, while wholesale sales rose 2.8 percent, with growth led by new product introductions. Sales at Rip Curl for the year was up 3.8 percent to 571.2 million New Zealand dollars, while sales at Kathmandu increased 11.1 percent to 402.3 million New Zealand dollars.

Group sales for KMD for the year rose 6.5 percent to 1.05 billion New Zealand dollars. After certain adjustments, the group recorded a statutory loss of 414.4 million New Zealand dollars.

Bluestar Alliance executives did not respond to a request for comment. Bluestar is a brand management firm founded in 2007 by Ralph Gindi and Joey Gabbay. Over the years, the firm has built a sizable brand portfolio that includes Off-White, Scotch & Soda, Hurley, Bebe, Tahari, Nanette Lepore, English Laundry and Catherine Malandrino, to name a few. Nearly a year ago, Bluestar acquired heritage workwear and lifestyle brand dickies from VF Corp. Its portfolio of premium fashion and lifestyel brands generate more than $13 billion in global retail sales.