Outdoor retailer Kathmandu Holdings on Tuesday said it will buy Australia-based surfing gear maker Rip Curl Group for A$350 million ($236.22 million) to diversify product offerings and expand geographic footprint to Europe and North America.

Kathmandu, which offers apparel and gear in the travel and adventure segment, operates stores in New Zealand, Australia and Britain.

Rip Curl, which has a presence across Australia, New Zealand, North America, Europe, South East Asia and Brazil, offers surfing-related products including highly technical wetsuits, boardshorts and other accessories.

The acquisition will provide a “seasonal balance” between Rip Curl’s summer/beach focus and Kathmandu’s winter/outdoor offerings.

Rip Curl Chief Executive Officer Michael Daly will continue to lead the firm and will report to Kathmandu CEO Xavier Simonet.

The transaction will be financed through a combination including a fully underwritten 1 for 4 pro-rata accelerated entitlement offer to raise NZ$145 million ($90.80 million) and a placement of about NZ$32 million of new Kathmandu shares to the founders and chief executive of Rip Curl, who will receive a part of the consideration in Kathmandu shares.