Iconix Brand Group Acquires Balance Of Iconix Latin America
NEW YORK, March 3, 2014 /PRNewswire/ -- Iconix Brand Group, Inc. (Nasdaq: ICON) ("Iconix" or the "Company"), today announced that it has acquired the remaining 50% of Iconix Latin America from its joint venture partner, New Brands Group, S.A., for $42 million.
Neil Cole, Chairman and CEO of Iconix Brand Group, Inc. commented, "We are excited about our international growth and the acquisition of the remaining interest of Iconix Latin America. Through organic growth and the recent acquisition of Umbro, we believe our business has reached critical mass in the Latin American marketplace. Going forward we will be able to focus on the unique business environment of each country in the region as we continue to grow the local presence of our portfolio of brands. International expansion is a key part of our overall organic growth strategy and we look forward to continuing to build our global footprint."
Since the formation of Iconix Latin America in December 2008, royalty revenue from the Company's portfolio of brands has more than quadrupled in the region with strong growth in Brazil, Mexico, Chile and across Central America. Between Iconix Latin America, the Company's recent acquisitions of Umbro, Buffalo and Lee Cooper, and its global Peanuts platform, the Company's portfolio of brands generates approximately $22 million of royalty revenue in Latin America and now has sufficient scale and market presence to move from the current centralized model to a multi-market model and to better capitalize on the opportunities in each local market.
The Company will discuss the financial details of this transaction on its first quarter 2014 earnings conference call.
About Iconix Brand Group, Inc.
About Iconix Brand Group, Inc. Iconix Brand Group, Inc. 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), MOSSIMO (R), LONDON FOG (R), OCEAN PACIFIC (R), DANSKIN (R), ROCAWEAR (R), CANNON (R), ROYAL VELVET (R), FIELDCREST (R), CHARISMA (R), STARTER (R), WAVERLY (R), ZOO YORK (R), ED HARDY (R), SHARPER IMAGE (R), UMBRO (R), LEE COOPER (R), ECKO UNLTD. (R), and MARC ECKO (R). In addition, Iconix owns interests in the ARTFUL DODGER (R), MATERIAL GIRL (R), PEANUTS (R), TRUTH OR DARE (R), BILLIONAIRE BOYS CLUB (R), ICE CREAM (R), MODERN AMUSEMENT (R), and BUFFALO (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 worldwide. Through its in-house business development, merchandising, advertising and public relations departments, Iconix manages its brands to 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", "estimate", "expect", "confident", "continue", "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
SOURCE Iconix Brand Group, Inc.