KMD Could Unlock Value by Selling Oboz or Rip Curl
KMD Brands Portfolio Review: Selling Oboz or Rip Curl Could Unlock Value
KMD Brands announced a business review that will examine the composition of its retail portfolio. Forsyth Barr analysts assessed what this could entail.
Oboz Underperformance and Sale Potential
Forsyth Barr notes that KMD's Oboz business has underperformed since its 2018 acquisition for US$75 million. Analyst Paul Laxton Koraua estimates that based on historical earnings (3x-7x EBITDA), KMD could realize between NZ$12 million and NZ$28 million from the sale of Oboz.
Rip Curl's Value
KMD's surfwear brand Rip Curl could generate between NZ$140 million and NZ$330 million from a sale. Forsyth Barr estimates KMD's total enterprise value at NZ$214 million.
Strategic Value Realization
"With KMD's current enterprise value of NZ$210 million, the sale of either of these businesses could be a value realization strategy for KMD," Forsyth Barr said.
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