NEW YORK, May 5 /PRNewswire-FirstCall/ -- Iconix Brand Group, Inc.
(Nasdaq: ICON) ("Iconix" or the "Company"), today announced that the Company
has acquired a 50% interest in Hardy Way, LLC, the owner of the Ed Hardy brand
and trademarks. Ed Hardy is the world's pre-eminent brand in tattoo inspired
lifestyle products. The brand has a tremendous celebrity following with fans
such as Madonna, Britney Spears and Kanye West who are frequently seen wearing
Ed Hardy designs.
The Company paid $17 million for its interest in Hardy Way, comprised of
$9 million in cash and $8 million in stock. In addition, the sellers could be
entitled to receive an additional $1 million in stock pursuant to an earn-out
based on 2009 royalties received by Hardy Way. Hardy Way estimates that 2009
royalty revenue will be approximately $10 million.
Neil Cole, Chairman and CEO, Iconix stated, "We are excited to have the
opportunity to participate in the continued success of the Ed Hardy brand and
believe there are tremendous growth opportunities worldwide." Mr. Cole added,
"We also believe that by owning the brand alongside Don Ed Hardy, the founder,
there will be opportunities to further leverage his iconic name along with his
Don Ed Hardy, commented, "As demand for my artwork continues to skyrocket,
I felt it was time to take on a partner that could help me manage the demand
and opportunities for the Ed Hardy name. Iconix is at the forefront of brand
management and clearly has the capabilities to dramatically grow the Ed Hardy
business. I'm thrilled to have them as a partner."
Don Ed Hardy and his artwork date back to 1967 when Hardy transformed the
tattoo business into an artistic medium. Hardy is known as "the godfather of
modern tattoo" for his sophistication, depth and sense of experimentation.
Since 2003, the Ed Hardy brand has been run by Nervous Tattoo, which is owned
by Christian Audigier. Today Ed Hardy is a global consumer products brand sold
in over 55 countries and 50 different categories including outerwear,
swimwear, fragrances, energy drinks, home goods and bags.
Iconix Brand Group Inc. (Nasdaq: ICON) owns, licenses and markets a
growing portfolio of consumer brands including CANDIE'S(R), BONGO(R), BADGLEY
MISCHKA(R), JOE BOXER(R) RAMPAGE(R) MUDD(R), LONDON FOG(R), MOSSIMO(R) OCEAN
PACIFIC(R), DANSKIN(R) ROCA WEAR(R), CANNON(R), ROYAL VELVET(R),
FIELDCREST(R), CHARISMA(R) STARTER(R) and WAVERLY(R). The Company licenses its
brands to a network of leading retailers and manufacturers that touch every
major segment of retail distribution from the luxury market to the mass market
in both the U.S. and around the world. Iconix, through its in-house
advertising, promotion and public relations agency, markets its brands to
continually drive greater consumer awareness and equity.
Safe Harbor Statement under the Private Securities Litigation Reform Act
of 1995. The statements that are not historical facts contained in this press
release are forward looking statements that involve a number of known and
unknown risks, uncertainties and other factors, all of which are difficult or
impossible to predict and many of which are beyond the control of the Company,
which may cause the actual results, performance or achievements of the Company
to be materially different from any future results, performance or
achievements expressed or implied by such forward looking statements. Such
factors include, but are not limited to, uncertainty regarding the results of
the Company's acquisition of additional licenses, continued market acceptance
of current products and the ability to successfully develop and market new
products particularly in light of rapidly changing fashion trends, the impact
of supply and manufacturing constraints or difficulties relating to the
Company's licensees' dependence on foreign manufacturers and suppliers,
uncertainties relating to customer plans and commitments, the ability of
licensees to successfully market and sell branded products, competition,
uncertainties relating to economic conditions in the markets in which the
Company operates, the ability to hire and retain key personnel, the ability to
obtain capital if required, the risks of litigation and regulatory
proceedings, the risks of uncertainty of trademark protection, the uncertainty
of marketing and licensing acquired trademarks and other risks detailed in the
Company's SEC filings. The words "believe", "anticipate," "expect",
"confident", "will", "project", "provide" "guidance" and similar expressions
identify forward-looking statements. Readers are cautioned not to place undue
reliance on these forward looking statements, which speak only as of the date
the statement was made.
Iconix Brand Group, Inc.
Director of Public Relations
Iconix Brand Group, Inc.
SOURCE Iconix Brand Group, Inc.
/CONTACT: Jaime Sheinheit, Investor Relations, or Maria Dolgetta,
Director of Public Relations, both of Iconix Brand Group, Inc.,
/Web Site: http://iconixbrand.com/ /
CO: Iconix Brand Group, Inc.; Hardy Way, LLC
ST: New York
IN: FAS REA
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0910 05/05/2009 07:30 EDT http://www.prnewswire.com