Kathmandu Holdings Ltd [NZX:KMD] has enjoyed bullish trading today, experiencing a jump of 5.90%.
Kathmandu is New Zealand’s most popular travel and adventure retailer, selling a wide range of outdoor clothing and equipment. The company operates a chain of stores across Australasia and the UK.
Kathmandu has a strong presence on the New Zealand Stock Exchange and Australian Securities Exchange.
At the time of writing, the company has a market capitalisation of $732 million, and the share price sits at $3.230.
Why has the [NZX:KMD] share price increased today?
The market sentiment was enthusiastic after news emerged this week of Kathmandu’s successful acquisition of the Rip Curl surfing brand.
Here are some key takeaways:
- Kathmandu has agreed to buy out Rip Curl for $368 million.
- This merger gives Kathmandu exclusive access to Rip Curl’s loyal customer base and dynamic product line.
- This lucrative deal has the potential to catapult Kathmandu’s market cap into billion-dollar territory.
Naturally enough, these developments have been received warmly by investors, driving a higher demand for Kathmandu shares.
Where could [NZX:KMD] go from here?
The immediate outlook for Kathmandu is positive. The Rip Curl acquisition bodes well for the company’s growth prospects on both the NZX and ASX.
However, some caution is still needed. The transaction will only be officially completed at the end of 2019. Between now and then, management details will need to be ironed out.
Regards,
John Ling,
Contributor, WealthMorning.com