Surf wear brand Billabong has sold its Tigerlily swimwear business to Crescent Capital for $60 million.
The private equity firm used PwC and Gilbert + Tobin to secure the company that was founded by the former wife of billionaire James Packer, Jodhi Meares.
It comes after the business was acquired by Billabong in 2007 for $5.8 million.
Tigerlily’s revenue was about $30m in 2016 and was expected to contribute about $7m and $8m in earnings before interest, tax, depreciation and amortisation for the 2017 financial year.
Crescent has secured the asset after L Capital Asia was in discussions to buy the business, taking advice from Moelis.
The announcement comes ahead of Billabong’s results tomorrow.
Billabong was advised by Houlihan Lokey and Baker McKenzie on the transaction.
The surfing brand suffered a near-death experience in 2013 and a sale of labels such as Tigerlily were well flagged last month as part of Billabong’s efforts to pay down debt.
Others potentially also heading for an exit are believed to be VonZipper and Xcel.
Billabong is expecting full-year EBITDA in the range of $60m to $65m.
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