BasicNet has signed a deal to reacquire the Kappa brand in Japan from the Chinese group DongXiang for $13 million. The company said the deal is limited to intellectual property assets and does not include any related business unit and should take place “in the coming months.”

“Japan is a key market in the world of sportswear that has been appreciating our products since the early ’80s, coming to reach a position of high market standing over time to then begin a prolonged period of stagnation,” BasicNet said in a statement. Sales of Kappa-branded products in Japan were worth $30 million in 2019, it added.

“With the integration to the BasicNet Business System and the selection of new licensee partners, we hope to give a major boost to the development of the brand in the country, also thanks to the very positive feedback that our brand continues to receive at a global level,” the company said.

Dongxiang chairman Chen Yihong said the disposal would allow it to improve the integration its resources and focus on the development of the Kappa brand in China “which is in the interests of the group’s long-term development and the shareholders as a whole.” “Looking forward, we will, as always, continue to develop our business in the People’s Republic of China through a multi-brand strategy, as well as to explore market opportunities,” he said.

BasicNet sold the rights in Japan to Phenix, a Japanese licensee company in 1994 to finance the acquisition of Maglificio Calzificio Torinese. In 2008, the Phenix Group was acquired by the Hong Kong-listed DongXiang, which has owned the Kappa brand on mainland China mainland and Macao since 2006.