Iconix Brand Group Announces Planned Acquisition of London Fog (R) Brand
August 21 2006 - 9:00AM
PR Newswire (US)
The Company also announces it will enter into a license agreement
with leading outerwear maker Herman Kay Bromley NEW YORK, Aug. 21
/PRNewswire-FirstCall/ -- Iconix Brand Group Inc., (NASDAQ:ICON)
("Iconix" or "the Company") today announced the planned acquisition
of the London Fog brand from London Fog Group Inc., subject to
certain closing conditions including final approval from Nevada
state bankruptcy court. The acquisition is scheduled to close on
August 28, 2006. Founded in the 1920s, London Fog today is an
internationally recognized brand of men's, women's and children's
outerwear, apparel, accessories, luggage and travel products.
According to a 2006 Women's Wear Daily study, London Fog ranked as
the #1 most recognized brand of outerwear in the United States. The
Company has also announced that it will enter into a license
agreement with leading outerwear maker Herman Kay Bromley. Herman
Kay Bromley will hold the license for men's and women's outerwear
and women's suits in the United States. The Company is currently
evaluating numerous additional domestic and international licensing
opportunities and will announce a more expanded licensing program
shortly. According to Neil Cole, Chairman and CEO of Iconix Brand
Group, "London Fog is an iconic name with a long and rich heritage
and extremely high brand awareness. It will greatly diversify our
portfolio by adding a classic brand that appeals to a broad segment
of consumers in the U.S. and around the world. We are thrilled to
have Herman Kay Bromley as the anchor licensee of what will quickly
become a large and diverse licensing program as we expand London
Fog into a broader lifestyle brand." The purchase price for the
transaction will be $30.5 million in cash and $7 million in Iconix
stock. The cash portion of the acquisition will be primarily funded
through an increase of the Company's asset backed note, which is
secured by certain of the Company's intellectual property. With the
addition of London Fog, and including the acquisition of the
Mossimo brand, which the Company anticipates will close in
September, Iconix will own eight highly recognized and diverse
consumer brands. About Iconix Brand Group: 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) and MUDD (R). The Company has also
signed a definitive agreement to purchase the brand MOSSIMO (R)
which is anticipated to close in September of this year. 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. Iconix, through its
in-house advertising agency, advertises and markets its brands to
continually drive greater consumer awareness and loyalty. About
Herman Kay Bromley: Herman Kay Bromley is one of the largest coat
companies in the United States and has been in business and family
run for over seventy years. Herman Kay Bromley manufacturers and
sells coats and outerwear under the labels Michael Kors, Anne
Klein, JLO and Jones New York, among others, and is based in New
York City and run by Barry and Richard Kay. 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 DATASOURCE:
Iconix Brand Group Inc. CONTACT: David Conn, Executive Vice
President of Iconix Brand Group, +1-212-730-0030; or Joseph Teklits
of Integrated Corporate Relations, +1-203-682-8200 Web site:
http://iconixbrand.com/
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