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| Iconix Brand Group, Inc. Announces Closing of Rocawear(R) Acquisition |
NEW YORK, April 2 /PRNewswire-FirstCall/ --Iconix Brand Group, Inc. (Nasdaq: ICON) ("Iconix" or the "Company") announced today that the Company has completed the acquisition of the brand Rocawear(R). The purchase price for the transaction was $204 million in cash with contingent payments of an additional $35 million of Iconix stock based upon the brand surpassing certain pre-determined performance thresholds over the next three to five years. The purchase price for the acquisition will be paid by Iconix in cash from proceeds of a loan made to the Company by one or more affiliates of Lehman Brothers Inc. Rocawear is a leading lifestyle apparel brand sold through better department and specialty stores with annual retail sales of over $700 million. Rocawear co-founder Shawn "Jay-Z" Carter will remain in charge of all product development, marketing and licensing for Rocawear and Jay-Z's senior management team in licensing, marketing and product development will be joining Iconix. Additionally, Iconix has entered into a separate equal joint venture with Shawn "Jay-Z" Carter to establish a new brand management and licensing company that will identify brands to be acquired and/or developed across a broad spectrum of consumer product categories using the Iconix model. 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) and DANSKIN(R) and ROCAWEAR(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", "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.
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SOURCE Iconix Brand Group, Inc. |
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