Key Takeaways:
- Bluestar Alliance can now conduct due diligence ahead of a possible deal for all of KMD Brands’ shares.
- The board has made no recommendation, and shareholders do not need to take action at this time.
- Exclusivity can be extended if conditions are met, with a final cutoff in December.
KMD Brands Limited, the parent company of Rip Curl, Kathmandu and Oboz, has entered an exclusivity agreement with Bluestar Alliance LLC, a U.S.-based consumer brand group, the company said in a statement Nov. 2.
The agreement allows Bluestar Alliance to conduct due diligence and continue discussions about a possible transaction to acquire all of KMD Brands’ shares.
Bluestar Alliance is a brand owner and licensor whose portfolio includes surf brand Hurley, workwear brand Dickies and a wide range of other brands.
If Bluestar Alliance successfully acquires KMD Brands, and with it Rip Curl, every heritage surf brand with scale would operate under a licensing model, including Quiksilver, Billabong, O’Neill, Hurley, Volcom and Rip Curl.
The update follows KMD Brands’ fiscal 2026 results, when the company said it had received a number of indicative approaches from external parties during its business review. The board said in September that it had determined further engagement with a limited number of those parties was appropriate.
Exclusivity Can Be Extended Up to Dec. 23
Discussions with Bluestar Alliance are ongoing. Exclusivity can be extended if specified conditions are met, but not past Dec. 23.
No Certainty of a Binding Proposal
KMD Brands said there is no certainty at this time that the process will result in a binding proposal, or that any transaction will be completed.
The board has not made a recommendation on any transaction, and the granting of exclusivity should not be taken as one, the company said. Shareholders do not need to take any action at this time.
