L Catterton Asia will take a 61 percent controlling stake of the combined group, named Swimwear Holding Co., making the firm the governing shareholder, WWD reports.
Seafolly and Maaji will each take 18 percent stakes and the remaining 3 percent of shares will be divvied amongst senior Seafolly and Maaji executives.
The merged companies will retain separate offices in Australia and Columbia.
“With this unparalleled combination of Seafolly and Maaji, we look to grow our portfolio and create the largest independent house of beach lifestyle brands,” Ravi Thakran, managing partner of L Catterton, said in a statement.
Thakran told WWD that the two beachwear brands brought in a combined $141 million in sales in 2016.
The main aim of the merger is to push the new beach lifestyle entity to $500 million in sales the next five years, in addition to plans of expanding in activewear, ready-to-wear resort pieces and accessories.
Founded in 1975 by Peter and Yvonne Halas, Seafolly has become synonymous with Australian beach life and has since expanded into international markets in Europe, North America and Asia. Anthony Halas became the brand’s CEO in 1988, but has since stepped down. Philip Richards has stepped in to take his role and will be known as the brand’s “chief transformation officer.”
Manuela and Amalia Sierra, founded Maaji in 2002 and are known for their reversible swimsuits. The brand is sold in over 54 countries and has 12 standalone stores across the U.S.
“This partnership is a critical step towards achieving our vision of positioning ourselves as a global beach lifestyle leader,” Miguel Piedrahita, Maaji’s CEO said. “We believe joining forces with L Catterton Asia, will enable us to deliver game-changing products and experiences to our consumers.”
Thakran said that L Catterton ultimatley has plans of adding more brands to Swimwear Holding Co. with a possible initial public offering or exit in five years.