PPR, the parent of Puma as well as luxury brands such as Gucci and Yves Saint Laurent, agreed to buy surfing-inspired apparel maker Volcom Inc for $607.5 million as the French company seeks to refocus on sports and lifestyle brands.

PPR will make a tender offer to acquire all outstanding Volcom shares for $24.50 a share, a 37 percent premium over Volcom’s three-month average trading price.

“Volcom is arguably one of the most desirable global action sports brands with an authentic legacy rooted in surf, skate, and snow sports” said François-Henri Pinault, Chairman and Chief executive officer of PPR.  “We admire Volcom’s brand management capabilities and the unique voice in which it speaks to its customers, expressed in high-quality, fashion-forward, innovative apparel and accessories.  Volcom is complementary to Puma and we are convinced that its integration into our Sport & Lifestyle Group will speed up its development.”

Richard Woolcott, Volcom’s Chairman and Chief executive officer, said, “PPR is the perfect partner to help take the Volcom and Electric brands to the next level of success.  For more than 20 years we have worked to inspire a movement that provokes freedom of thought and expression, and celebrated this spirit through our athletes, worldwide events, rock tours, feature films and, of course, our apparel.  PPR, with its expertise gained through both Puma and its Luxury Group, could bring international market knowledge, sourcing capabilities and other operational expertise in areas such as product development and retailing to help the company grow Volcom globally, while preserving the elements that make the brands authentic.”

The deal is the latest step in Pinault’s strategy to shrink the company’s retail arm and add more sports and apparel brands to complement its strong luxury business known for brands like Gucci, Yves Saint Laurent, Bottega Veneta, Balenciaga, Sergio Rossi, Alexander McQueen and Stella McCartney.

Volcom will be the first brand outside Puma as part of its new Sport & Lifestyle Group, which is being headed by former Puma CEO Jochen Zeitz.

Some Volcom directors and officers, who own 14.4 percent of the outstanding shares, have already agreed to tender their shares and the company’s board has recommended that other shareholders do the same.

The deal is expected to close in the third quarter.

PPR has raised some 2.4 billion euros by selling an African distribution business CFAO and French furniture retailer Conforama. It has also said it wants to sell its catalogue business Redcats and books and electronics retailer FNAC.

Pinault told the Financial Times in an interview in Monday’s edition that PPR would use the sales proceeds to pay off debt and do small to medium-sized acquisitions. “If you buy something that is already big, it is very difficult to offset the acquisition premium,” he told the paper.

Volcom’s revenues grew 14 percent to $323.2 million last year and it posted a net profit of $22.3 million. Two-thirds of its sales come in the United States with Europe the second-biggest region.

Peter J. Solomon Company acted as financial adviser to PPR while Wells Fargo Securities LLC advised Volcom.