Australia's largest department store retailer Myer Holdings has agreed to acquire the remaining 35% in women's fashion brand Sass & Bide for AUD30m (US$27.8m).

Since Myer bought a 65% stake in Sass & Bide in February 2011, the brand has seen sales grow 45% and profit by 112% over the period.

"Sass & Bide is well placed to continue building on this strong platform and has an exciting pipeline of growth initiatives to deliver including new store openings and brand extensions into new categories," said Myer CEO Bernie Brookes.

Sass & Bide founders Heidi Middleton and Sarah-Jane Clarke, as well as executive chairman David Briskin will remain involved in the business, Myer said.

Megan Foster, most recently group general manager of marketing and brand at Myer, has been appointed as managing director of Sass & Bide and group general manager of Myer freestanding stores. Briskin will continue to manage the business with Foster.

The acquisition is expected to be funded through existing facilities and cash flow.

It comes as Myer reported an after tax profit of AUD127m for the full year to 27 July, down 8.7% from the same period last year, while total sales were up 0.8% to $3.15bn.