Australian surfwear label Hot Tuna was on Friday acquired by investment company Federation Group for A$6.6 million.

Federation said all settlement components had been completed and it had acquired an 85 per cent stake in the label. Industry observers say the deal is likely to mark a return of the Hot Tuna brand to the US, Europe and Asian markets.

Hot Tuna clothing, which spans sports such as surfing, snowboarding, windsurfing and skateboarding, is currently sold in stores in Australia, New Zealand, Hong Kong and Singapore.

Federation said the purchase would also add value to its fully-owned subsidiary SLE Australia, which focuses on photoluminescent pigments used in textiles, logos and sporting goods.