California-based Aussie Apparel Group Ltd on Monday signed a definitive licensing agreement for the TSA extreme sports apparel brand with an option to buy its trademarks.

The company did not disclose financial details of the deal with Krash Distribution Inc, which has been selling the brand to extreme sports enthusiasts for the past 12 years, but said it sees TSA revenues of $47 million over the next five years.

Aussie Apparel president and CEO, Bruce MacGregor, said: "As Aussie Apparel emerges from its developmental phase, management has refined its business plan to allow for rapid growth within the extreme sports apparel market.

"With the recent addition of the Bluetorch label to our portfolio, the licensing (with an option to purchase) of the TSA brand is an important step forward as Aussie re-aligns its core business.

"Given that the Bluetorch brand provides Aussie with a strong presence across all extreme sports categories within the our core and specialty shop retail channel, we have decided to introduce the TSA label into mass-market retail distribution channel, providing us with much greater leverage for rapid revenue growth."

He added his firm has held talks Federation Group (majority owner of Frontier International Holdings) regarding the possible restructuring of their relationship.

"Part of the brand realignment strategy that we have discussed with the Australians is to shift the Hot Tuna brand's distribution to the mid-tier department store and sporting goods channel," he explained.

"Assuming we come to an agreement with the Australians on a revised relationship, I feel that this is a significant upgrade in terms of brand (Hot Tuna versus Xisle) awareness and revenue potential in the mid-tier channel.

"This would also allow us to replace Hot Tuna with the Bluetorch brand in the core and specialty shops, which once again, is a significant upgrade."