Surfwear firm Billabong has entered an agreement with Trilantic Capital Partners to establish a joint venture to grow its Nixon brand globally.

Billabong and Trilantic will each hold around 48.5% in Nixon, with management taking the remaining 3%.

"Nixon has achieved strong growth since Billabong's acquisition of the brand in 2006," the company said, adding that it is now well placed to "grow deeper" into accounts such as existing Nixon retailers, speciality watch and fashion retailers as well as select consumer electronics stores.

"The partnership with Trilantic gives Nixon the financial backing and impetus to achieve this growth," said Billabong CEO Derek O'Neill.

Nixon's co-founders, Andy Laats and Chad DiNenna will continue in their roles as CEO and EVP of marketing, respectively, while holding a significant equity investment.

The deal values Nixon at around US$464m. Billabong, which earlier today said it is set to close as many as 150 stores amid falling first-half profits, plans to use the proceeds to pay down debt.