AUSTRALIA: Federation Group Nets Hot Tuna Surfwear
Although financial details have not been disclosed, Federation told the Australian Stock Exchange that the purchase comprises Hot Tuna's intellectual property and all future national and international business of the brand.
"The acquisition of the Hot Tuna brand by Federation and the management buy-in team will assist expansion of the business globally," Federation said.
Federation will take an 85 per cent stake in Hot Tuna while the new management team, unidentified but described as having extensive international experience in the surf and extreme sports clothing industry, will own 15 per cent.
A Federation spokesman told Dow Jones Newswires: "It certainly is the intention, with the extra capital base that Federation can supply, to relaunch Hot Tuna back into the US, Europe and Asian marketplaces."
Hot Tuna clothing, which spans sports such as surfing, snowboarding, windsurfing and skateboarding, is currently sold in stores in Australia, New Zealand, Hong Kong and Singapore.
After a preliminary review of Hot Tuna, Federation said it expects revenues from the business to be between A$12 million and A$20 million in the first 12 months from the date of acquisition.
Federation said the purchase would also add value to its fully-owned subsidiary SLE Australia, which focuses on photoluminescent pigments used in textiles, logos and sporting goods.
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