Surf-led fashion business Quiksilver is to sell its majority stake in online action sports goods retailer Surfdome to Australian rival SurfStitch Group.

As part of the deal, Surfdome will continue to carry Quiksilver, Roxy and DC products under a two-year supply agreement. Quiksilver expects to receive US$16m for its equity interest, loans and other amounts due from Surfdome.

The transaction is expected to close before the end of the current calendar year.

"The sale of Surfdome is in keeping with our strategy to focus on our core Quiksilver, Roxy and DC brands," said chairman and CEO Andy Mooney. "Moreover, this will complete our planned exits from non-strategic businesses, which have included Mervin Manufacturing, Hawk Designs, VSTR, Summer Teeth and Moskova."

The announcement comes almost a year after Quiksilver said it was looking to sell its Surfdome Shop, Hawk Designs and Moskova brands, to refocus its strategy on its top-selling brands.

Surfdome reported sales of around $60m for the twelve months to October.