Iconix Brands Group Inc. is leaving the glare of Wall Street.
The model home — proprietor of Candie’s, London Fog, Ocean Pacific, Zoo York, Rocawear, Umbro, Marc Ecko and plenty of others — signed a deal to be taken non-public by Lancer Capital.
The all-cash transaction, anticipated to shut earlier than the tip of the third quarter, values the corporate at roughly $585 million, together with web debt. Lancer pays $3.15 a share, a 28.6 p.c premium over Iconix’s closing value on Thursday.
Bob Galvin, chief govt officer, stated the deal comes after a yearlong research of the corporate’s strategic alternate options.
“After a thorough and deliberative examination of all potential strategic alternatives, the board of directors determined that the transaction with Lancer provides the best value for our stockholders,” Galvin stated. “We expect that Iconix will continue developing its brands and supporting its partners as a private company.”
The deal was authorized unanimously by the corporate’s board.
Iconix traces its roots again to 2005 when Neil Cole, who ran Candie’s, modified enterprise fashions, pioneering an method to vogue that had the corporate not making the products, however owing names and arranging licensing offers. The method helped the corporate and plenty of of its manufacturers develop globally, drawing extra enterprise out of names that in some circumstances have been searching for new life.
The firm flourished for a time, turning into one of many busiest dealmakers in vogue, shopping for model after model and buying numerous pursuits in manufacturers equivalent to Material Girl, Truth or Dare, Buffalo and Pony. Along the best way Iconix sought inventive methods to construct and prolong, for example staging preliminary public choices for the Chinese enterprise of a few of its manufacturers.
But Cole stepped down in 2015 and the corporate quickly discovered itself the goal of a Securities and Exchange Commission investigation into its accounting. According to its most up-to-date annual report, Iconix reached a settlement within the matter and paid a civil penalty of $5.5 million in December 2019.
Iconix has remained busy — the corporate signed 190 license agreements final yr, representing $134 million in whole minimal royalties, and offered off its Lee Cooper China enterprise.
As the corporate explored its choices, the enterprise mannequin it helped form has taken off for others.
Jamie Salter’s Authentic Brands Group has been utilizing among the similar playbook, however considering even greater, shopping for Barneys New York, Forever 21, J.C. Penney Co. Inc., Brooks Brothers and Lucky Brand lately, inking offers left and proper and making new, typically uncommon connections. That firm is eyeing an IPO subsequent month that would worth it at $10 billion.
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