The Company also announces it will enter into a license agreement with leading
outerwear maker Herman Kay Bromley
NEW YORK, Aug. 21 /PRNewswire-FirstCall/ -- Iconix Brand Group Inc.,
(Nasdaq: ICON) ("Iconix" or "the Company") today announced the planned
acquisition of the London Fog brand from London Fog Group Inc., subject to
certain closing conditions including final approval from Nevada state
bankruptcy court. The acquisition is scheduled to close on August 28, 2006.
Founded in the 1920s, London Fog today is an internationally recognized
brand of men's, women's and children's outerwear, apparel, accessories,
luggage and travel products. According to a 2006 Women's Wear Daily study,
London Fog ranked as the #1 most recognized brand of outerwear in the United
The Company has also announced that it will enter into a license agreement
with leading outerwear maker Herman Kay Bromley. Herman Kay Bromley will hold
the license for men's and women's outerwear and women's suits in the United
States. The Company is currently evaluating numerous additional domestic and
international licensing opportunities and will announce a more expanded
licensing program shortly.
According to Neil Cole, Chairman and CEO of Iconix Brand Group, "London
Fog is an iconic name with a long and rich heritage and extremely high brand
awareness. It will greatly diversify our portfolio by adding a classic brand
that appeals to a broad segment of consumers in the U.S. and around the world.
We are thrilled to have Herman Kay Bromley as the anchor licensee of what will
quickly become a large and diverse licensing program as we expand London Fog
into a broader lifestyle brand."
The purchase price for the transaction will be $30.5 million in cash and
$7 million in Iconix stock. The cash portion of the acquisition will be
primarily funded through an increase of the Company's asset backed note, which
is secured by certain of the Company's intellectual property. With the
addition of London Fog, and including the acquisition of the Mossimo brand,
which the Company anticipates will close in September, Iconix will own eight
highly recognized and diverse consumer brands.
About Iconix Brand Group:
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) and MUDD (R). The Company has
also signed a definitive agreement to purchase the brand MOSSIMO (R) which is
anticipated to close in September of this year. The Company licenses it 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.
Iconix, through its in-house advertising agency, advertises and markets its
brands to continually drive greater consumer awareness and loyalty.
About Herman Kay Bromley:
Herman Kay Bromley is one of the largest coat companies in the United
States and has been in business and family run for over seventy years. Herman
Kay Bromley manufacturers and sells coats and outerwear under the labels
Michael Kors, Anne Klein, JLO and Jones New York, among others, and is based
in New York City and run by Barry and Richard Kay.
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", "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.
Contact: David Conn
Executive Vice President
Iconix Brand Group
Integrated Corporate Relations
SOURCE Iconix Brand Group Inc.
/CONTACT: David Conn, Executive Vice President of Iconix Brand Group,
+1-212-730-0030; or Joseph Teklits of Integrated Corporate Relations,
/Web site: http://iconixbrand.com /
CO: Iconix Brand Group Inc.; London Fog Group Inc.
ST: New York, Nevada
IN: REA FAS
SU: TNM LIC BCY
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3372 08/21/2006 08:00 EDT http://www.prnewswire.com