Australian surfwear company Billabong International has revealed plans to sell its Tigerlily swimwear brand for AUD60m (US$46.1m).

The Queensland-based company said it has entered into a binding agreement with Sydney-based private equity firm Crescent Capital Partners for the business, which it acquired in December 2007 for AUD5.8m.

The funds generated from the sale will be used to retire debt, while the transaction itself is in line with Billabong's strategy to simplify its brand portfolio.

In November of last year, the surfwear giant said it was looking to sell some of its smaller labels in a bid to focus on its three "big brands" — Billabong, RVCA and Element – and drive down debt.

Billabong looks to sell off smaller brands

Tigerlily's revenue was approximately AUD30m for the twelve month period ended 31 December 2016, and on a full year basis was expected to contribute between AUD7m and AUD8m in EBITDA to Billabong for the 2017 financial year.

The transaction is subject to conditions and is expected to close before the end of the current financial year. Houlihan Lokey and Baker McKenzie acted as advisors.