Iconix Buys Half of Ed Hardy Brand
In a $17 million deal finalized on May 4, Iconix Brand Group—owners of the Mossimo, Rampage, Joe Boxer, Candie’s, Bongo, Ocean Pacific and Badgely Mischka brands—entered into a joint venture to create Hardy Way LLC. Under the terms of the deal, New York–based Iconix acquired a 50 percent ownership in the Ed Hardy brand and trademarks, which previously operated under the Hardy Life name.
Ed Hardy, a San Francisco–based old-school tattoo artist, has licensed his name and art to various entities, the most well-known being designer Christian Audigier, who has put Hardy’s work on everything from wine and swimwear to jeans and water through his Nervous Tattoo company. A release by Iconix said Hardy Way estimates that 2009 royalty revenue will be approximately $10 million.
The deal, which included a cash payment of $9 million and $8 million in stock, is the latest California brand to join the Iconix roster. Mossimo was purchased for an estimated $119 million, Rampage for nearly $50 million and Ocean Pacific for roughly $40 million.
“We are excited to have the opportunity to participate in the continued success of the Ed Hardy brand and believe there are tremendous growth opportunities worldwide,” Neil Cole, chairman and chief executive of Iconix, said in a statement. “We also believe that by owning the brand alongside Don Ed Hardy, the founder, there will be opportunities to further leverage his iconic name along with his new artwork.”
Dave Rosenberg, general manager of Hardy Way in San Francisco, said the merger with Iconix wouldn’t affect current Ed Hardy licenses but that with the addition of Iconix, the brand is well-poised for future growth. “We don’t expect the brand to change. Ed’s artwork will remain the focus. But we were ready for a more sophisticated licensing company to come in and help manage our business,” he said.
Audigier was bullish on the deal. “We are extremely pleased and looking forward to a great and exciting collaboration with Don Ed Hardy and the Iconix Group,” he said.
With the Ed Hardy acquisition, Iconix will be working closely with Hubert Guez, Nervous Tattoo’s chief executive, from whom it acquired the Bongo brand. In 2007, Iconix was awarded approximately $50 million in damages related to that acquisition after it successfully claimed that Guez carried out “schemes to deprive plaintiffs of millions of dollars through fraud and blatant acts of self-dealing over several years.” Guez reportedly has yet to pay the settlement. —Erin Barajas
