UK-based clothing company Superdry has agreed to sell its intellectual property (IP) assets in certain Asia-Pacific (APAC) countries to the South Korea-based Cowell Fashion Company.

The $50 deal will enable Cowell to own and use the Superdry brand in South Korea with plans to extend it to other countries in the region, including China.

The agreement excludes Bangladesh, India, Pakistan, Australia, Sri Lanka and New Zealand.

Superdry will retain its IP rights both in these countries and outside the APAC region.

As part of the agreement, Superdry and Cowell will jointly develop relevant products that are consistent with the Superdry brand.

In the first two years after the sale, Superdry will offer support and knowledge relating to the brand to Cowell.

Cowell will pay an additional management fee of $1m, in two payments of $500,000, for the service it receives from Superdry.

Superdry will receive the first instalment once the deal has closed, while the second instalment will be paid a year after its completion.

Superdry CEO and founder Julian Dunkerton said: “This agreement offers the Superdry brand a fantastic opportunity to expand its global reach, while providing additional funding to help deliver our turnaround programme in the face of the challenging consumer landscape.

“I’m absolutely thrilled by the opportunity to work together with Cowell to create inspiring products consistent with our brand heritage and build out across the APAC market.”

The IP assets to be sold accounted for around 1.2% of total Superdry’s sales and contributed revenue of £7.4m ($9.1m) in the 12 months to 30 April last year.

They also generated a profit before tax of around £2.5m.

Cowell Fashion chairman Lee Sun-seop said: “With the two companies aligned together through explosive synergy, the plan to grow Superdry into a Superbrand across Asia is an exciting proposition as long-term partners.”