Iconix Brand Group Announces Definitive Agreement to Purchase Danskin(R) Brand
February 22 2007 - 8:00AM
PR Newswire (US)
NEW YORK, Feb. 22 /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
Danskin(R) from Danskin, Inc. ("Seller" or "Danskin"). The
transaction is anticipated to close in March 2007. Danskin is a 125
year-old iconic brand of women's active wear, leg wear, dance wear,
yoga apparel and fitness equipment. The brand is sold through
better department, specialty and sporting goods stores, and through
fifteen freestanding Danskin boutiques and Danskin.com. Danskin
also has a partnership with Wal-Mart Stores for its "Danskin Now
(R)" brand of apparel and fitness equipment. The purchase price for
the transaction will be $70 million with a contingent payment of an
additional $15 million, payable in cash or stock, triggered by the
brand exceeding certain revenue and performance targets. The
acquisition will be self-funded from the Company's cash reserves.
Iconix has also announced that, as of the closing, it will enter
into a license agreement with the Seller, to continue to operate
the Danskin(R) wholesale business including the freestanding retail
stores. Carol Hochman, President and CEO of Danskin, and her team
will continue as Iconix's licensee to grow the Danskin department
and sporting goods store business. Neil Cole, Chairman and CEO of
Iconix commented, "Danskin is one of the most established and
recognized active wear brands in the world and we are thrilled to
add it to our portfolio and to be partnering with Carol and her
team as our licensee. Upon closing, this acquisition will further
our diversification strategy by giving us a strong presence in the
rapidly growing active wear, yoga and fitness market. We are also
excited to have the opportunity to work with Wal-Mart on 'Danskin
Now(R).'" Carol Hochman, CEO of Danskin commented, "We have made a
lot of progress expanding this great brand and implementing our
multi-channel distribution strategy but the missing ingredient has
been the marketing strategy and investment needed to complete our
vision. The Iconix team has exciting plans for Danskin(R) and I am
looking forward to working closely with them to grow the business."
Additional details of the Danskin acquisition will be addressed on
the Company's fourth quarter and 2006 year end earnings conference
call scheduled for Tuesday March 6, 2007 at 10:00 am EST. The
transaction is subject to customary closing conditions including
clearance under the Hart-Scott-Rodino Anti Trust Improvements Act
of 1976 as amended and Danskin stockholder approval. Iconix Brand
Group Inc. (NASDAQ:ICONNASDAQ:-NASDAQ: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 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 DATASOURCE:
Iconix Brand Group, Inc. CONTACT: David Conn, Executive Vice
President, Iconix Brand Group, +1-212-730-0030; Joseph Teklits,
Integrated Corporate Relations, +1-203-682-8200, for Iconix Brand
Group, Inc. Web site: http://iconixbrand.com/
http://www.danskin.com/
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