Editors Note: This story has been updated as of December 4, 2017, with new details around the sale of the HUF brand. It was originally published on November 29, 2017.

HUF has released the details around its sale to Japanese apparel group TSI Holdings, after the initial news broke in Japan at the end of November.

HUF sells 90% stake

Keith Hufnagel, founder of HUF. Photo: HUF

It was reported that the sale price for 90% of the HUF brand would total $63 million, although an exact number was not revealed by HUF.

The sale also included the Lakai Limited Footwear brand, which is part of HUF Worldwide Holdings, and is expected to be finalized by December 15. TSI Holdings also distributes the Stüssy brand under its subsidiary Jack.

"TSI is a great strategic partner and brand platform for HUF, Steve Holley, HUF CEO said. “The transaction gives us immediate access to the broader global marketplace in a way that would take us many years to achieve on our own. We are excited for HUF's future as part of TSI."

Related: A conversation with Keith Hufnagel on 15 years of HUF

Founder Keith Hufnagel added, "We've had a long relationship with TSI as our distribution partner in Japan. I have total confidence that they understand HUF as a brand and that we will be able continue to create amazing product, which is the most important thing to me. I also want to thank Altamont and the team there for all of their support - they have been great partners."

Under TSI, HUF will operate as an independent global company and will continue to be led by Keith Hufnagel (Founder), Steve Holley (CEO) and Jon Brubaker (CFO). HUF global headquarters will continue to be located in Irvine, CA and creative offices will continue to be located in Downtown Los Angeles.

HUF was founded by Hufnagel in 1992, and received a significant investment in late 2014 from Altamont Capital -- which also owns stake in Brixton, Dakine and Mervin Manufacturing.

Related: Keith Hufnagel on the state of the industry

Altamont Capital declined to comment on the sale of HUF at this time.

TSI Holdings expects to apply a similar model to HUF as it did with Stüssy, according to reports, and expects to significantly increase the brand’s annual revenue in Japan within the next 5 years. HUF currently has 3 retail stores in Japan that bring in 400 million yen annually.

“Skateboarding is now an official sport at the Tokyo Olympic Games, so from now on the number of competitors may increase. I'd like to expand the company simultaneously in China, not just in Japan,” said TSI Holdings President Tadashi Saito.

According to reports, TSI is also pursuing a joint venture with a leading apparel company in China, and plans to nearly double the brand's overseas sales from 5.1 billion yen to 10 billion in the next five years.

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