Iconix Partners to Launch Iconix Europe
New York–based apparel and licensing giant Iconix Brand Group has announced a partnership with The Licensing Co. to form Iconix Europe, a new subsidiary that will develop and expand the Iconix portfolio of brands in Europe.
As part of the deal, The Licensing Co. and Albion Equity Partners paid $4 million for a 50 percent interest in Iconix Europe and the right to the first $6 million of distributions. Distributions topping $6 million will be split equally between the two parties.
Iconix currently has 11 existing European licenses, and Iconix Europe will operate similarly to its U.S. business model of signing “traditional and direct-to-retail licensing agreements,” a statement from the company said. Neil Cole, Iconix’s chief executive and chairman, said similar international partnerships in China and Latin America spurred the European division. “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,” he said in a statement.
The Licensing Co. is a global licensing agency with more than 2,000 license contracts and offices in London, New York, Tokyo, Munich and Paris. Its license portfolio includes contracts with Coca Cola, Jelly Belly and Jim Beam.
Iconix owns, licenses and markets brands such as Badgley Mischka, Rampage, Ocean Pacific and Mossimo.
Iconix raised its fiscal 2009 guidance on the value of the deal to $227 million to $231 million from its previous estimate of $215 million to $220 million and expects earnings per share to be at the higher end of its range of $1.17 to $1.22.—Erin Barajas
