CINCINNATI, April 27 /PRNewswire-FirstCall/ -- Two months
after launching a strategic review of its character licensing
business, The E.W. Scripps Company (NYSE: SSP) has signed an
agreement to sell United Media Licensing for $175 million to Iconix Brand Group, Inc. (Nasdaq:
ICON).
In conjunction with this transaction, Iconix has formed a
partnership with the family of the late Charles Schulz, who created the beloved Peanuts
characters, which represent the majority of United Media's
licensing business.
The all-cash transaction is expected to close by the end of the
second quarter.
United Media Licensing is one of the largest independent
licensing agencies in the world, representing brands and creative
content in the development and management of licensed merchandise
and promotional programs. United Media works with more than 1,250
licensees in approximately 40 countries. United Media-licensed
merchandise generates annual retail sales of more than $2 billion, with nearly 20,000 new products
approved each year. The majority of licensing revenue is generated
by products associated with the characters of the Peanuts comic
strip, which Scripps brought to market in 1950.
New York-based Iconix Brand
Group, formerly known as Candie's, is a brand management company
that engages in licensing and marketing for a portfolio of owned
consumer brands, including Candie's, Bongo, Badgley Mischka, Joe
Boxer, Rampage, Mudd, London Fog, Mossimo, Ocean Pacific/OP,
Danskin, Rocawear, Cannon, Royal Velvet, Fieldcrest, Charisma,
Starter, and Waverly. Iconix Brand
Group, through its joint ventures, also owns Artful Dodger,
Ed Hardy, Ecko, and Zoo York brands.
It licenses its brands directly to retailers, wholesalers, and
suppliers for use across a range of product categories.
"We're putting our characters in good hands at Iconix," said
Rich Boehne, president and chief
executive officer of The E.W. Scripps Company. "The Peanuts
characters have been our entertaining co-workers and the Schulz
family has been our trusted partner for nearly 60 years. But this
is the right move for all involved as we go our separate ways in
recognition of changing times and new strategies. Parting with our
licensing operations was a difficult decision, but it allows
Scripps to advance our focus on being an innovative leader in the
rapidly evolving news industry."
Scripps provided no immediate indication of how it would deploy
the after-tax proceeds from the sale. The company had $10.4 million of bank debt on its balance sheet
as of March 31, 2010.
Scripps still owns United Media's syndication operation and will
continue to syndicate comic strips and editorial features that are
developed and marketed worldwide through United Feature Syndicate
and Newspaper Enterprise Association.
About Scripps
The E.W. Scripps Company is a diverse, 131-year-old media
enterprise with interests in television stations, newspapers, and
local news and information Web sites. The company's portfolio of
locally focused media properties includes: 10 TV stations (six ABC
affiliates, three NBC affiliates and one independent); daily and
community newspapers in 13 markets; the Washington, D.C.-based Scripps Media Center,
home of the Scripps Howard News Service; and United Media, a
syndicator of more than 150 comic strips and editorial features.
For a full listing of Scripps media companies and their associated
Web sites, visit http://www.scripps.com/.
SOURCE The E.W. Scripps Company