Surfwear giant Billabong has completed the transaction to establish a joint venture for the Nixon brand, following an initial announcement earlier this year.
Billabong, which acquired the Nixon brand in 2006, entered into definitive agreements with Trilantic Capital Partners (TCP) a few months ago to establish a joint venture to accelerate the growth of the Nixon brand globally.
Under the agreement, which is now complete, Billabong and Trilantic will each hold approximately 48.5 per cent of Nixon, a leading brand in the youth accessory market, and management will purchase the remaining 3.0 per cent stake.
In February this year, Billabong said it expected to realise net proceeds of approximately US$285 million as a result of the transaction, all of which will be used to repay debt.
The deal follows lacklustre half year sales results for the Billabong empire, with the company recently reporting a 71.8 per cent dive (AUD terms) in net profit after tax, to $16.1 million for the six months ended December 31, 2011.