Kathmandu, listed on both the Australian and New Zealand stock exchanges, said the acquisition would create a "$1 billion global outdoor and action sports company anchored by two iconic Australasian brands."
The acquisition will be funded through debt, a placement of $145 million and a further $32 million of Kathmandu shares to founders and Rip Curl chief executive Michael Daly.
Rip Curl, founded in Bells Beach, Australia in 1969 by surfer friends Brian Singer and Douglas Warbrick, offers surf products from wetsuits and swimwear to equipment and accessories through outlets in Australia, New Zealand, North America, Europe, Asia and Brazil.
Kathmandu chief executive Xavier Simonet said the acquisition offered a "fantastic opportunity" for Kathmandu to grow and diversify in product, channel, geography and seasonality.
"Importantly there is also strong cultural alignment between our brands, underpinned by a shared focus on quality, innovation and sustainability," he said.
Kathmandu was founded in Christchurch in 1987 by Jan Cameron and John Pawson. The expanded company will have 341 owned retail stores, 254 licensed stores and more than 7300 wholesale doorways globally.
Rip Curl chief executive Michael Daly will continue to lead the company from its Torquay head office.
Kathmandu said the transaction was expected to deliver growth in earnings per share in excess of 10% for Kathmandu shareholders for its 2020 financial year.
The transaction will require shareholder approval at a special meeting of shareholders to be held in Sydney on 18 October, the company said.
