NEW YORK, Sept. 29 /PRNewswire-FirstCall/ -- Iconix Brand Group, Inc. (Nasdaq: ICON) ("Iconix" or the "Company") today announced that it has entered into a definitive agreement to purchase the Waverly(R) brand from Nexcen Brands, Inc. (Nasdaq: NEXC). The purchase price will be $26 million to be paid in cash and the acquisition is anticipated to close within 30 days. Iconix is forecasting the next 12 month royalty revenue from Waverly to be approximately $7 million.
Neil Cole, Chairman and CEO, Iconix stated, "With the acquisition of Waverly, the Company is reinforcing its commitment to the home industry. It also allows us to establish new partnerships for Iconix with a diverse group of retailers from Lowe's to J.C. Penney to Jo-Ann Fabrics within the home category. In addition, we believe our ability to finance this acquisition with our existing cash in the current economic environment demonstrates the strength of the Iconix business model."
Founded in 1923, Waverly is a premier home fashion and lifestyle brand and one of the most recognized names in home furnishings. Waverly has two direct-to-retail agreements, Waverly Home with Target and Waverly Home Classics with Lowe's.
Carolyn D'Angelo, VP of Brand Management for Home, Iconix commented, "Waverly is a brand with a strong heritage of design that is well regarded among consumers. It is a great addition to our current home portfolio because it not only broadens the categories we are in today with its paint, fabric, and wallcovering collections, but offers additional opportunities for growth in areas such as furniture, outdoor and garden."
Peter J. Solomon Company was an advisor to Iconix for this acquisition.
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), DANSKIN(R), ROCA WEAR(R), CANNON(R), ROYAL VELVET(R), FIELDCREST(R), CHARISMA(R) and STARTER(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", "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.
Director of Strategic Development
Iconix Brand Group
Integrated Corporate Relations
SOURCE Iconix Brand Group, Inc.