NEW YORK--(BUSINESS WIRE)--July 25, 2005--Iconix Brand Group, Inc.
(NASDAQ: ICON), formerly Candie's, Inc. ("Iconix" or the "Company"),
announced today that it has purchased JOE BOXER(R), a leading
lifestyle brand of apparel, apparel accessories and home goods for
men, women, teens and children, from Joe Boxer Company, LLC and its
affiliates. The JOE BOXER brand is currently licensed exclusively to
Kmart in the United States and internationally to manufacturers in
Canada and Europe. The purchase price was comprised of $40 million in
cash, 4,350,000 shares of restricted stock and an assumption of
approximately $11 million in debt. Through its existing agreements
with Kmart and international licensees, the JOE BOXER brand generates
approximately $20 million in annual royalty income.
According to Neil Cole, Chairman and CEO of Iconix, ""JOE BOXER is
a very powerful brand with over ninety percent awareness and an
irreverent and playful image that entertains consumers and adds
excitement to the retail floor. This acquisition supports the growth
strategy of Iconix to diversify and expand our portfolio of brands by
giving us a strong presence in the young men's market and entry into
staple categories like underwear, sleepwear, socks and hosiery." Cole
added, "Iconix is recognized for innovative marketing. We look forward
to creating exciting advertising and events for JOE BOXER that stay
true to its heritage yet expands the brand even further with its
Bill Sweedler, formerly CEO of Windsong Allegiance Group, LLC,
will join Iconix as President of the newly formed JOE BOXER division.
Mr. Sweedler will also have a seat on the Iconix Brand Group Board of
Directors. Bill Sweedler commented, "I am thrilled to be joining such
an exciting company. Iconix has a unique and powerful business model
that is ahead of its time and I am looking forward to working closely
with the team to make Iconix the dominant brand management business
within the fashion industry." Andy Tarshis, formerly a Senior Vice
President at Windsong Allegiance Group and Joe Hovey, formerly
Executive Brand Manager, will also be joining Iconix. Financo, Inc.
advised Windsong Allegiance Group in the transaction. In addition,
pursuant to NASD Marketplace rule 4350(i), the Company issued to Mr.
Sweedler 1.4 million 10-year non-plan options to purchase the
Company's stock at a price as of the closing date, a majority of which
vest based upon meeting certain revenue goals.
The acquisition was financed through an increase of the Company's
current asset-backed note, which is secured by the Company's
intellectual property and is due at the end of 2012. UCC Capital
Corporation, an industry leader in middle market lending secured by
intellectual property completed the financing for the transaction. The
two firms have worked together in the past with an asset-backed
securitization of the Candie's and Bongo brands, and UCC also advised
Iconix on its acquisition of Badgley Mischka. Robert W. D'Loren,
President and CEO of UCC commented, "Our platform has been designed
and built to assist consumer branded product companies in every step
of their growth. UCC is proud to be an ongoing part of the Iconix
Brand Group's exciting and aggressive growth strategy."
The Company has scheduled a conference call for 10:00 A.M., EST,
on Thursday August 4th to discuss 2nd Quarter 2005 earnings, the new
JOE BOXER acquisition and revised guidance for 2005.
About Iconix Brand Group
Iconix Brand Group, Inc. (NASDAQ: ICON) is in the business of
licensing the CANDIE'S(R), BONGO(R) , BADGLEY MISCHKA(R) and JOE
BOXER(R) trademarks on a variety of apparel and fashion products.
Through its wholly owned subsidiary, Brightstar Footwear, Inc., the
Company also arranges for the manufacture of footwear products for
mass market retailers. For investor information please visit the
corporate Web site at www.iconixbrand.com.
About Windsong Allegiance Group
Windsong Allegiance Group and its affiliates design, distribute,
and manage a broad line of the highest quality men's and women's
apparel and accessories, including sport and dress shirts, sweaters,
knits, casual pants and shorts, outerwear, leather, golf sportswear,
underwear, loungewear, sleepwear, and swimwear to all levels of retail
distribution. Windsong and its affiliates own a portfolio of highly
recognized brands including, New Frontier, Como Sport, Pivot Rules and
Navy Cutter. The company has also entered into exclusive licensing
arrangements with Alexander Julian Private Reserve, Alexander Julian
Colours, Geoffrey Beene, Stanley Blacker and Saturday Night Live. Log
on to www.windsongallegiance.com for more information. For further
information, please contact: Colette Landi Sipperly -917-767-9796.
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 decision to license its footwear
business, 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
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", 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.
CONTACT: Iconix Brand Group
Maria Dolgetta, 212-730-0030
SOURCE: Iconix Brand Group, Inc.