KMD Brands has confirmed it is in exclusive discussions with US retail investor Bluestar Alliance about a possible takeover of the ASX-listed parent of Kathmandu, Rip Curl and Oboz.
In an ASX announcement on Monday the company said it had received several approaches from external parties and had entered into an exclusivity agreement with Bluestar regarding “a possible transaction to acquire all of the shares in KMD”.
KMD cautioned there was no certainty the process would produce a binding proposal or that any transaction would be completed.
Bluestar Alliance is a US-based retail group whose portfolio includes labels such as Dickies, and which also controls Scotch & Soda, Hurley, bebe, Off-White and Palm Angels.
The market reacted quickly: KMD shares jumped 10.4% at 12.35pm AEDT on Monday following the announcement.
The stock has been under pressure over the past 12 months, falling almost 60% from its earlier levels.
KMD Brands owns outdoor and adventure clothing company Kathmandu, surfwear brand Rip Curl and footwear business Oboz, making it a significant player across outdoor, surf and footwear retailing in Australia and internationally.
An exclusivity agreement typically means the named suitor has a limited period to conduct due diligence and negotiate terms without competing bids, and KMD’s statement confirmed Bluestar is the counterparty for that phase of talks.
The ASX announcement did not disclose any proposed price or a timetable for the exclusivity period, and KMD did not give any further detail on potential conditions attached to the discussions.
