California-based casual clothing maker Quiksilver Inc on Monday revealed it had agreed a $7.5 million deal to buy Beach Street Inc, the owner and operator of 26 Quiksilver outlet stores, in an all stock transaction.

Quiksilver said in a statement it expects the deal to add around $12m in revenue to its fiscal 2003 results and plans to integrate the operations of Beach Street with its own QS Retail Inc division.

It added that in connection with the transaction, it has agreed a one-year consulting agreement with John Thompson, the principal shareholder and chief executive of Beach Street.

Quiksilver chairman and CEO, Bob McKnight, commented: "This acquisition further cements our control over our brands and our distribution.

"This business will not only contribute to our sales and profits, but it will also allow us to gain additional flexibility in our off-price business by reducing our reliance on independent off-price retailers while giving us superior operational efficiencies in inventory planning and shipping."