Mossimo Giannulli, the founder and majority shareholder in clothing designer Mossimo Inc, is to acquire the remaining shares in the company for $5 each in cash.

On completion of the transaction, which is likely to be by the end of November, Mossimo Inc will become a wholly owned subsidiary of Mossimo Holding Corp, a company wholly-owned by Giannulli.

Mossimo, which licenses its name for clothing sold by discount retail giant Target Corp, said in a statement on Thursday that he price represents a 25 per cent premium over an earlier offer made by Giannulli in April.