Iconix Brand Group, Inc. and The Licensing Company Announce the Formation of Iconix Europe
December 22 2009 - 8:00AM
PR Newswire (US)
NEW YORK, Dec. 22 /PRNewswire-FirstCall/ -- Iconix Brand Group,
Inc. (NASDAQ:ICON) ("Iconix" or the "Company"), today announced
that it has partnered with The Licensing Company ("TLC") to further
develop and expand the Iconix portfolio of brands in Europe through
a newly formed subsidiary, Iconix Europe LLC. As part of the
transaction, an investment group led by TLC and Albion Equity
Partners LLP acquired a 50% interest in Iconix Europe in exchange
for $4 million and Iconix retained a 50% interest, along with a
right entitling it to the first $6 million of distributions.
Distributions above $6 million will be split 50/50 between the
parties. The business model of Iconix Europe will be similar to the
Iconix strategy of signing traditional and direct-to-retail (DTR)
licensing agreements for the Iconix portfolio of brands. There are
11 existing licensing agreements in the region. Neil Cole, Chairman
and CEO of Iconix, commented, "We are excited to be partnering with
TLC, who are recognized as licensing experts in the European
marketplace. With early signs of success in our recently formed
international partnerships in China and Latin America, we have
found that having local expertise with local resources around the
world is instrumental to the success of rolling out our brands
globally. International expansion remains an important initiative
for our organic growth, and we look forward to working with TLC to
grow our brands through this new venture." Melvin Thomas, CEO and
Co- Founder of TLC stated, "This is an important relationship for
both TLC and the European Retail market place. We are excited to be
partnering with Iconix who have clearly helped re-define the
licensing and brand extension business globally. TLC is uniquely
qualified and respected throughout Europe and we will be looking to
translate the Iconix model and brand assets into real industry
success through our local offices in London, Munich and Paris."
Iconix Europe marks the third international partnership for the
Company. Iconix also has partnerships with Silas Chou's Novel
Fashions in China, and with The Falic Group in Latin America.
Including the forthcoming office of Iconix Europe, Iconix has
locally based personnel in New York, Hong Kong, Panama City and
London. Updated Guidance Iconix expects to record a pre-tax gain of
approximately $5-7 million related to this transaction. Inclusive
of this transaction and the Ecko acquisition, the Company now
anticipates 2009 revenue to be $227-231 million from its previous
estimate of $215-220 million. As previously disclosed, the Ecko
acquisition will not be accretive in 2009 and therefore due to deal
costs related to the Ecko acquisition in addition to slightly
higher marketing expense, the Company expects to be at the higher
end of its 2009 EPS guidance range of $1.17-$1.22 About The
Licensing Company Limited (TLC) The Licensing Company (TLC) is a
privately held global licensing agency that specializes in creating
long-term significant brand extension programs for some of the
world's top brands. TLC was founded in London in 1996 by Melvin
Thomas and Angela Farrugia with the goal of providing sensational
results for its clients. Through its five strategically placed
offices, New York, London, Tokyo, Munich and Paris, TLC currently
boasts over 2,000 active licensing contracts, more than $2.8
billion in retail sales, and access to over 80% of the world's
consumer marketplace. Among the world-class brands in TLC's
portfolio are Coca Cola, National Trust, Jelly Belly, BIC,
Cosmopolitan, Airwick, Woolite, Jim Beam, Kahlua and Malibu Rum.
About Albion Equity Partners LLP (Albion) Albion Equity Partners is
a financial investment company dedicated to supporting consumer
facing businesses with significant intellectual property content
and international growth opportunities. Albion is a significant
shareholder in TLC. About Iconix Brand Group, Inc. 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) MUDD (R), LONDON FOG
(R), MOSSIMO (R) OCEAN PACIFIC(R), DANSKIN (R) ROCA WEAR(R), CANNON
(R), ROYAL VELVET (R), FIELDCREST (R), CHARISMA (R), STARTER (R)
and WAVERLY (R). In addition, Iconix owns an interest in the ARTFUL
DODGER (R), ED HARDY (R) and ECKO (R) brands. The Company licenses
its 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, including the
prospectus supplement relating to the offering. The words
"believe," "anticipate," "expect," "confident," "will," "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. All forward-looking
statements are qualified by these cautionary statements and apply
only as of the date they are made. The Company undertakes no
obligation to update any forward-looking statement, whether as a
result of new information, future events or otherwise. Contact
Information: Jaime Sheinheit Investor Relations Iconix Brand Group
212.730.0030 DATASOURCE: Iconix Brand Group, Inc. CONTACT: Jaime
Sheinheit, Investor Relations, Iconix Brand Group, +1-212-730-0030
Web Site: http://iconixbrand.com/
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