Iconix Brand completes closing of Rocawear acquisition
03 Apr '07
1 min read
Iconix Brand Group Inc announced that the Company has completed the acquisition of the brand Rocawear.
The purchase price for the transaction was $204 million in cash with contingent payments of an additional $35 million of Iconix stock based upon the brand surpassing certain pre-determined performance thresholds over the next three to five years.
The purchase price for the acquisition will be paid by Iconix in cash from proceeds of a loan made to the Company by one or more affiliates of Lehman Brothers Inc.
Rocawear is a leading lifestyle apparel brand sold through better department and specialty stores with annual retail sales of over $700 million. Rocawear co-founder Shawn "Jay-Z" Carter will remain in charge of all product development, marketing and licensing for Rocawear and Jay-Z's senior management team in licensing, marketing and product development willbe joining Iconix.
Additionally, Iconix has entered into a separate equal joint venture with Shawn "Jay-Z" Carter to establish a new brand management and licensing company that will identify brands to be acquired and/or developed across a broad spectrum of consumer product categories using the Iconix model.
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