NEW YORK, July 20, 2017 /PRNewswire/ -- Iconix Brand
Group, Inc. (Nasdaq: ICON) ("Iconix" or the "Company"), today
announced that it has bought back the remaining 50% interest in
Iconix Canada from its joint venture partner for $19 million, subject to a net asset value
adjustment. Under the terms of the agreement, Iconix paid
$12 million upon closing, with the
remaining $7 million to be paid over
the next two years. Separately, Iconix will retain its 51% interest
in the Buffalo brand.
John Haugh, Chief Executive
Officer of Iconix, commented, "International expansion is a key
part of our growth strategy, and Canada represents an opportunity to advance
our objectives. Today Iconix is underpenetrated in
Canada and we believe with the
strength of our brands we have room for growth. Iconix has a record
of growth in territories where we have previously acquired full
interest including Latin America
and China, and we expect to
continue this success through our full ownership of Iconix
Canada."
Haugh further stated, "We have also made the strategic decision
to retain our 51% interest in the Buffalo brand, which we had
previously contemplated selling. Buffalo has been a strong
performing brand in both Canada
and the U.S. We believe retaining our majority interest in the
Buffalo brand and gaining 100% control of Iconix Canada solidly
positions us for organic growth in Canada."
Iconix Canada was formed in 2013, and has licenses for brands
including London Fog, Ecko Unltd., Charisma, Danskin, Rampage,
Rocawear, Zoo York, Umbro, Fieldcrest, Royal Velvet, Ed Hardy, and Waverly.
About Iconix Brand Group, Inc.
Iconix Brand Group, Inc. owns, licenses and markets a
portfolio of consumer brands including: CANDIE'S (R), BONGO
(R), JOE BOXER (R), RAMPAGE (R), MUDD (R), MOSSIMO (R),
LONDON FOG (R), OCEAN PACIFIC (R),
DANSKIN (R), ROCAWEAR (R), CANNON (R), ROYAL VELVET (R), FIELDCREST
(R), CHARISMA (R), STARTER (R), WAVERLY (R), ZOO YORK
(R), UMBRO (R), LEE COOPER (R), ECKO UNLTD.
(R), MARC ECKO (R), and ARTFUL DODGER. In addition,
Iconix owns interests in the MATERIAL GIRL (R), ED
HARDY (R), TRUTH OR DARE (R), MODERN AMUSEMENT (R), BUFFALO
(R), NICK GRAHAM (R) and PONY (R) brands. The Company
licenses its brands to a network of leading retailers and
manufacturers that touch every major segment of retail distribution
in both the U.S. and worldwide. Through its in-house business
development, merchandising, advertising and public relations
departments, Iconix manages its brands to drive greater consumer
awareness and equity.
Forward-Looking Statements
In addition to historical information, this press release
contains forward-looking statements within the meaning of the
federal securities laws. Such forward-looking statements include
projections regarding the Company's beliefs and expectations about
future performance and, in some cases, may be identified by words
like "anticipate," "assume," "believe," "continue," "could,"
"estimate," "expect," "intend," "may," "plan," "potential,"
"predict," "project," "future," "will," "seek" and similar terms or
phrases. These statements are based on the Company's beliefs and
assumptions, which in turn are based on information available as of
the date of this press release. Forward-looking statements involve
known and unknown risks and uncertainties, which could cause actual
results to differ materially from those contained in any
forward-looking statement and could harm the Company's business,
prospects, results of operations, liquidity and financial condition
and cause its stock price to decline significantly. Many of these
factors are beyond the Company's ability to control or predict.
Important factors that could cause the Company's actual results to
differ materially from those indicated in the forward-looking
statements include, among others: the ability of the Company's
licensees to maintain their license agreements or to produce and
market products bearing the Company's brand names, the Company's
ability to retain and negotiate favorable licenses, the Company's
ability to meet its outstanding debt obligations and the events and
risks referenced in the sections titled "Risk Factors" in the
Company's Annual Report on Form 10-K for the year ended
December 31, 2016 and subsequent
Quarterly Reports on Form 10-Q and in other documents filed or
furnished with the Securities and Exchange Commission. These
forward-looking statements are made only as of the date hereof,
and, except as required by applicable law, the Company undertakes
no obligation to update or revise publicly any forward-looking
statements.
Contact Information:
Jaime Sheinheit
Iconix Brand Group
jsheinheit@iconixbrand.com
212.730.0030
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SOURCE Iconix Brand Group, Inc.