Kathmandu has agreed to acquire US-based Oboz Footwear for a base cash consideration of $US60 million and earn-out of up to $US15 million.
Oboz had an overall revenue growth of 36.5% from 2016 to 2017.
Oboz designs, sources, and sells footwear for backpacking, hiking, travel, winter and general outdoor wear.
Oboz distributes its products directly to North American outdoor chains, speciality outdoor retailers, limited online sellers, shoe stores and sporting goods retailers.
During due diligence, Kathmandu identified two risks:
- Approximately 45% of Oboz's revenue is derived from a single customer. Oboz does not have a formal contract in place with this customer.
- Oboz relies on two parties to manufacture its products and does not currently have formal contracts with either supplier.
Kathmandu CEO Xavier Simonet said this is a boom for business.
"This is a significant event for the company, accelerating our international growth, and diversifying our product mix, geography and channels to market."