Iconix Brand Group Inc. announced that it has bought back the remaining 50 percent interest in Iconix Canada from its joint venture partner for $19 million, subject to a net asset value adjustment. Under the terms of the agreement, Iconix paid $12 million upon closing, with the remaining $7 million to be paid over the next two years. Separately, Iconix will retain its 51 percent interest in the Buffalo brand.
John Haugh, Chief Executive Officer of Iconix, commented, “International expansion is a key part of our growth strategy, and Canada represents an opportunity to advance our objectives. Today Iconix is underpenetrated in Canada and we believe with the strength of our brands we have room for growth. Iconix has a record of growth in territories where we have previously acquired full interest including Latin America and China, and we expect to continue this success through our full ownership of Iconix Canada.”
Haugh further stated, “We have also made the strategic decision to retain our 51 percent interest in the Buffalo brand, which we had previously contemplated selling. Buffalo has been a strong performing brand in both Canada and the U.S. We believe retaining our majority interest in the Buffalo brand and gaining 100 percent control of Iconix Canada solidly positions us for organic growth in Canada.”
Iconix Canada was formed in 2013, and has licenses for brands including London Fog, Ecko Unltd., Charisma, Danskin, Rampage, Rocawear, Zoo York, Umbro, Fieldcrest, Royal Velvet, Ed Hardy, and Waverly.