Leading Italian sportswear and sports shoe firm Fila Holding SpA on Wednesday said it had signed two license agreements with its former subsidiaries in Australia and Brazil as part of its move to streamline the group.

The Biella-based company said in a news release that in Australia it had reached a 10 year footwear and apparel license agreement with SM Brands, which started on July 1, while in South America, Sport Marketing Brazil will be operating as core licensing partner through December 2006.

Fila also announced a deal with Haddad Apparel Group to design, manufacture and distribute Fila Kids apparel lines in the USA and Canada, with the first Fila products hitting the market with the Holiday 2002 collection.

Fila CEO Marco Isaia commented: "I'm very pleased of the new agreements, as well as with the results of Fila's main licenses. The partnership with Haddad will improve Fila's brand penetration in the US and Canadian markets by leveraging from our partner's experience in kids business.

"The two new core license partnerships will improve Fila profitability through the royalties flow and reduce overall structural costs. In the past couple of years, the fixed expenses associated with the two subsidiaries together were around 14 million euros a year. We count on the expertise and reputation of our partners to consolidate a stronger positioning in these markets".