Australian youth apparel and footwear group Globe International has entered into an agreement to sell its skate and snow brand, World Industries, to US-based I.e. Distribution.

The transaction was completed today (25 June) for US$8m for the World Industries brand and its licences globally.

The deal is expected to generate approximately AUD$9m in cash for Globe, after transaction costs, and the net pre-tax profit on sale is expected to be approximately AUD$6m.

Globe chief executive officer Matt Hill said: "Following the sale of our Streetwear business earlier this year, we have now concentrated heavily on returning Globe to a proprietary branded boardsports footwear, apparel and hardgoods business.

"The decision to sell the World Industries brand will ensure that our efforts in the future will be concentrated on growing the international brands over which we have direct distribution and marketing controls. The Globe owned Dwindle Distribution will remain as the distributor of World Industries hardgoods for the grassroots market."

Globe said it would not incur any internal restructuring costs as a result of the transaction and there would be no job losses. However, the company said that there would be a reduction in direct brand expenses.

The Melbourne-based surfwear group acquired World Industries in 2002.