May 2 - French retail and luxury giant PPR said it would buy California-based Volcom Inc, which specialises in youth-oriented sports clothes, for $607.5 million in cash.

Volcom store in Las Vegas

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

The deal, which is expected to close in the third quarter, furthers PPR's aim to exit its retail businesses to grow in luxury and so-called lifestyle brands.

Volcom's brand is tied in with California snowboard and skate culture, and the company sells high-end T-shirts, hooded sweatshirts and other apparel.

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.

PPR's shares were up 1.45 percent to 122.50 euros per share on Monday morning at 7:11 GMT.

(Reporting by James Regan; Editing by Christian Plumb)