* Rocawear founder and cultural icon Shawn 'Jay-Z' Carter to continue as
chief creative officer
* Iconix and Shawn 'Jay-Z' Carter to enter into separate equal joint
venture to explore additional brand development opportunities using the
Iconix model
NEW YORK, March 6 /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 brand Rocawear. The
purchase price will be $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.
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 Jay-Z will be in charge of all product development, marketing and
licensing for Rocawear. Jay-Z's senior management team in licensing, marketing
and product development will also join Iconix. He will retain his stake in the
operating company that manufactures all of the Rocawear men's apparel and his
two partners in that business, Alex Bize and Norton Cher, will continue to run
that company and enter into a long-term license agreement with Iconix for the
core young men's apparel category. Iconix is forecasting that the Rocawear
brand will generate approximately $43 million in royalty revenue in its first
twelve months under the Iconix umbrella.
As part of the transaction, Iconix will also enter into a separate equal
joint venture with Shawn 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.
The first brand will involve Jay-Z and will be an eponymous luxury brand
called "Shawn Carter Collection" which will debut in 2008.
Neil Cole, Chairman and CEO of Iconix Brand Group commented, "This is the
largest acquisition Iconix has made and Rocawear is a brand that is increasing
in market share and has extraordinary potential for growth. The leadership
team is already in place to fulfill our mission and we will maintain complete
continuity within the business by having Jay and his team in charge of all
product development, licensing and marketing. Jay and his partners in the
operating company that manufactures all of the Rocawear men's apparel, Alex
Bize and Norton Cher, will become our licensee for the core business. Iconix
will add talent and resources that I believe will help make Rocawear a billion
dollar global brand. This acquisition will be transformative for Iconix in
terms of its scale, the diversification it brings to our portfolio of brands
as well as having someone as talented as Jay-Z joining our company and the
many synergies that could bring."
Shawn Carter, co-founder of Rocawear, commented, "Iconix is pioneering a
new brand management model and by combining Rocawear with their platform, my
team and I can focus on our strengths in design and lifestyle marketing."
Carter added, "I'm also looking forward to working with Neil Cole and the
Iconix organization on other brand development opportunities."
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. The acquisition is anticipated to close in March 2007 and is
subject to customary closing conditions including clearance under the Hart-
Scott-Rodino Anti Trust Improvements Act of 1976, as amended.
Iconix Brand Group Inc. (Nasdaq: ICON - News) 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) and OCEAN PACIFIC (R). The Company has also entered into
definitive agreements to purchase the brands DANSKIN (R) and ROCAWEAR (R). 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 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.
Contact: David Conn
Executive Vice President
Iconix Brand Group
212.730.0030
Joseph Teklits
Integrated Corporate Relations
203.682.8200
SOURCE Iconix Brand Group, Inc.
-0- 03/06/2007
/CONTACT: David Conn, Executive Vice President, Iconix Brand Group, +1-
212-730-0030; Joseph Teklits, Integrated Corporate Relations, +1-203-682-8200/
/Web site: http://iconixbrand.com /
(ICON)
CO: Iconix Brand Group, Inc.; Rocawear
ST: New York
IN: FAS REA
SU: TNM JVN
RB
-- NYTU088 --
6394 03/06/2007 08:00 EST http://www.prnewswire.com