Company To Expand Its Portfolio Into Consumer Electronic Industry
NEW YORK, Oct. 27, 2011 /PRNewswire via COMTEX/ --
Iconix Brand Group, Inc. (NASDAQ: ICON) ("Iconix" the "Company") announced today that it has signed a definitive agreement to acquire The Sharper Image® brand and intellectual property assets from Sharper Image Acquisition, LLC for approximately $65.6 million in cash. This acquisition will mark the Company's first entry into the rising consumer electronics sector.
Sharper Image is a respected brand in the consumer electronics industry with over 85% brand recognition, and is best known for its innovative products. This will be a seamless transition for the Company, as Sharper Image operates under a licensing business model. The Company estimates that the Sharper Image brand will generate approximately $12-13 million in annual royalty revenue through a variety of categories including audio and video electronics, travel gear, personal home products, kitchen and bath accessories, massage products, air purification products and giftables. Sharper Image products are sold nationwide at better department and specialty stores and direct to consumer through the Sharper Image catalog and e-commerce website, www.sharperimage.com.
"This is an exciting acquisition for Iconix," commented, Neil Cole, Chairman and CEO, Iconix Brand Group. "With the addition of the Sharper Image brand, we continue to demonstrate the diversification of our business model and strength of our Company. We always believed that the Iconix platform could be leveraged across numerous industries and this acquisition reinforces that message."
About Iconix Brand Group, Inc.
Iconix Brand Group, Inc. 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), ZOO YORK (R) and WAVERLY (R). In addition, Iconix owns an interest in the ARTFUL DODGER (R), ED HARDY (R), ECKO (R), MARC ECKO (R), MATERIAL GIRL(TM) and PEANUTS (R) brands. 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 worldwide. Through its in-house business development, merchandising, advertising and public relations departments Iconix manages its brands to 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.
VP, Public Relations
Iconix Brand Group, Inc.
SOURCE Iconix Brand Group, Inc.