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.
Executive Vice President
Iconix Brand Group
Integrated Corporate Relations
SOURCE Iconix Brand Group, Inc.
/CONTACT: David Conn, Executive Vice President, +1-212-730-0030, or
Joseph Teklits, Integrated Corporate Relations, +1-203-682-8200, both of
Iconix Brand Group/
/Web site: http://iconixbrand.com /