Billabong purchases Tigerlily

GOLD COAST: International surfwear brand Billabong has acquired swimwear label Tigerlily from founder Jodhi Meares.

In a statement to the ASX, the listed group did not reveal what it had paid for the brand but noted the acquisition would be "profitable" in the first year. It is understood the brand will contribute less than 1 per cent of group sales.

Meares will retain a creative role in the business.

Billabong CEO Derek O'Neill said the purchase represented the group's first acquisition focusing exclusively on the girls market.

"It is a brand with a strong profile and market acceptance. We plan to retain its immediate focus on the Australian market and, over time, we will explore opportunities in other territories," O'Neill said.

Meares said the sale would help Tigerlily fast-track its domestic growth.

"I've admired the Billabong business for many years and I'm continually drawn to the fact that it is a company built around a lifestyle. It is a philosophy that I've been mindful of in the growth of Tigerlily so it's an entirely appropriate fit," Meares said.