Iconix Brand Group, Inc. has closed on the acquisition of the MUDD brand from Mudd LLC. On April 3, 2006, the Company signed a definitive agreement to purchase substantially all of the assets of Mudd relating to the Mudd brand and related marks, subject to clearance under the Hart-Scott-Rodino Antitrust Act. The Company received notice that the early termination of the waiting period under the HSR Act was effective as of April 7, 2006.
At closing, the purchase price for the Mudd brand was $45,000,000 in cash and 3,269,231 shares of the Company's stock. The cash portion of the acquisition was financed through an increase of the current asset-backed notes issued by a subsidiary of the Company, which are secured by the intellectual property of the subsidiary. The Company has assumed 11 existing license agreements for Mudd and has entered into a new license for use of the name in the core denim business with Mudd (USA) and the brand's founder Dick Gilbert. The Mudd brand is estimated to generate between $18 and $20 million in 2007 royalty revenue.
Neil Cole, Chairman and CEO of Iconix, stated, “We are very pleased to add Mudd to our growing portfolio of powerful brands. Mudd is a recognized leader not only in denim, but with established businesses in footwear, handbags, kid's apparel, eyewear and watches. This acquisition further diversifies our revenue base and presents another great opportunity for Iconix to apply its expertise in marketing and brand management to transform what is a hot junior label to an enduring life style brand.”