Surfwear company Billabong (ASX: BBG) will cut 400 jobs from its Nixon brand after completing a $276 million sale of half the brand.
Billabong and Trilantic Capital Partners (TCP) will each own about 48.5% of Nixon, while Nixon management will retain 3%.
TCP is New York-based private equity firm targeting mid-sized companies and was formerly known as Lehman Brothers Merchant Banking.
“Billabong realised net proceeds of approximately $US285 million ($A276.12 million) as a result of this transaction,” the company said in a statement to the ASX.
The sale is expected to result in a significant one-off gain in the group’s income statement this year.
“This will be reduced by the previously announced impairment charge for the group’s South Africa business and any other abnormal one-off charges that arise from the group’s continuing strategic review,” Billabong said.
In February, the company reported a 71% slump in first-half net profit to $16.097 million for last six months of 2011.
Billabong owns brands Element, Von Zipper, Honolua Surf Company, Kustom, Palmers Surf, and Tigerlily.
Billabong’s shares were up 0.69% to $2.91 at 1.30pm AEST.
Billabong International price history chart. Source: ASX