NEW YORK, April 27 /PRNewswire-FirstCall/ -- Iconix Brand
Group, Inc. (Nasdaq: ICON) ("Iconix" or the "Company"), today
announced that it has signed a definitive agreement with United
Features Syndicate, Inc. ("UFS") and The E.W. Scripps Company
("Scripps") to acquire the Peanuts brand and related assets in
partnership with the Schulz family. As part of the transaction,
Iconix will also acquire the licensing and character representation
business of United Media Licensing, a division of UFS, which, in
addition to Peanuts, represents a number of character brands,
including Dilbert and Fancy Nancy. The Peanuts brand and
other acquired assets will be purchased through a newly formed
subsidiary, which will be owned 80% by Iconix and 20% by the Schulz
family.
The cast of Peanuts, includes, among others, iconic and well
known characters such as Charlie
Brown, Snoopy, Lucy, Linus, Sally, Schroeder, Peppermint
Patty and Woodstock. Peanuts has a
strong diversified global licensing platform with over 1,200
licensing agreements including relationships with MetLife,
Hallmark, Universal Studios, Warner Bros., Cedar Fair, H&M,
Benetton, Old Navy, CVS and Walgreens. The Peanuts brand is
licensed in over 40 countries and generates annual retail sales of
over $2 billion.
"We are excited to embark on this transformative deal for our
Company," stated Neil Cole, Chairman
and CEO of Iconix Brand Group, Inc. Cole added, "The Peanuts brand
is iconic, with some of the most beloved and well known characters
in history. Peanuts is considered one of the most influential comic
strips of all time and with its 60th anniversary this year the
characters continue to be as popular as ever. Owning the Peanuts
business moves Iconix well beyond fashion into a true global brand
management entity with a wide variety of agreements that range from
theme parks to media to financial institutions. It also extends our
international platform with Peanuts licensed in over 40 countries
and approximately two-thirds of its revenue coming from outside of
the U.S. After closing this transaction, Iconix will be diversified
with fashion only representing approximately two-thirds of our
revenue. Further, we believe Peanuts large global footprint and
broad licensing relationships will also open up new doors for our
existing portfolio of brands and future acquisitions. We are
equally excited to have the Schulz family as our partners and
believe their passion and insight will be invaluable to the future
success of the Peanuts brand."
Jean Schulz, wife of the late
Charles M. Schulz, commented, "We
are grateful and proud of the active partnership we have had with
United Media for the past 60 years. From the beginning, my husband
worked directly with the people using his art to preserve the
authenticity of his characters. Since his death, we have
continued to do the same, working directly with our licensees to be
true to my husband's art." She added, "As we look to the future, it
is a joy to partner with a company whose founder is at the
helm. Neil and his team have great respect for who the
Peanuts characters are and they honor all we have accomplished, and
the spirit with which we do business."
Craig Schulz, son of Charles M. Schulz, stated, "The Schulz family is
extremely excited by the opportunity to create this partnership
with Neil Cole and Iconix.
Peanuts now has the best of both worlds, family ownership and the
vision and resources of Iconix to perpetuate what my father created
throughout the next century with all the goodwill his lovable
characters bring."
The total purchase price for this acquisition is approximately
$175 million of which Iconix will pay
for its 80% share and the Schulz family will pay for its 20% share.
Iconix portion will be funded from the Company's existing cash
balance.
On a pro-forma basis the Company expects Peanuts to generate
approximately $75 million in annual
royalty revenue and add approximately $0.12-$0.15 in annual EPS. Different from a
typical Iconix acquisition, the costs associated with the Peanuts
business will be higher than the Company's existing brands as there
is an existing contractual revenue share with the Schulz heirs,
which is separate from the family's 20% interest in the new
partnership. There are also agent commissions and additional
administrative costs associated with managing over 1,200 contracts
around the world. Initially, EBITDA margins for this business
are expected to be in a range of approximately 20%-25%. In
2010, the accretion will be impacted by deal costs and will depend
on the timing of the close.
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), ECKO (R), MARC ECKO (R), ZOO YORK (R) and MATERIAL GIRL™
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.
About Charles M. Schulz Creative Associates
Charles M. Schulz Creative Associates was established to work in
partnership with United Media on the creative and business
management of the PEANUTS worldwide licensing program, providing
creative oversight to the over 1,200 PEANUTS licensees and art
direction for over 24,000 products a year. Creative
Associates is located in Charles
Schulz's hometown of Santa Rosa,
California, where the PEANUTS creator maintained his studio
for over thirty years. On the same property Schulz built an ice
arena, cafe, and gift shop. In August
2002, two years after his death, the Charles M. Schulz
Museum and Research Center opened adjacent to his studio. The
museum fulfills its mission to preserve, display, and interpret the
life and art of Charles M. Schulz by
offering rotating exhibitions of original art and personal
artifacts, showcasing Schulz and his cartoon creations Charlie Brown, Snoopy, and the whole Peanuts
Gang.
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", "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.
Iconix Brand Group,
Inc. Contacts:
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Jaime
Sheinheit
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Investor
Relations
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Iconix
Brand Group
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212.730.0030
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Maria
Dolgetta
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VP of
Public Relations
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212.819.2084
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mdolgetta@iconixbrand.com
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Contact for Schulz
Family:
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Kim
Towner
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Charles
M. Schulz Creative Associates
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212-721-3222
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SOURCE Iconix Brand Group, Inc.