Italian sportswear company BasicNet SpA has renewed its licensing agreement with Brazilian company Fonthe SA Industria e Comercio de Confeccoes for another five years.

The deal covers the distribution of the Kappa and Robe di Kappa brands and envisages guaranteed sales of at least $38.8 million in clothings and accessories.

Franco Spalla, CEO of the Italian company, said the Brazilian market is important for the development of BasicNet's brands and enhances the company's presence in South America.

BasicNet recently signed licensing agreements in Argentina and Chile, and last month appointed Russian clothing and sports shoes retailer Sll Kappa Rus to distribute its Kappa and Robe di Kappa brands in the former USSR republics.