Shareholders in beleaguered surf and skate wear company Billabong International finally have something to smile about.
Billabong has sold its Tigerlily brand to Crescent Capital Partners for $60 million - $40 million less than what some observers said the brand was worth but 10 times more than its purchase price of $5.8 million and well above book value of just $3.6 million.
Billabong bought Tigerlily from former bikini model Jodhi Meares, one of the ex-wives of James Packer, in December 2007.
Over the last nine years Billabong has transforming Tigerlily from a local to a global brand with sales of $30 million and earnings of $7 million to $8 million.
The deal was conveniently completed ahead of Billabong's December-half results, which will be released on Friday, giving chairman Ian Pollard and chief executive Neil Fiske some good news to tell shareholders.
Net proceeds will be used to reduce debt. Billabong was advised by Houlihan Lokey and Baker McKenzie.
Gilbert + Tobin and PwC advised Crescent.
Billabong flagged plans to sell a number of brands, including Tigerlily, at its annual general meeting last November.
