Iconix Brand Group, Inc. signed a definitive agreement to acquire the Strawberry Shortcake brand and related intangible assets from American Greetings for $105 million in cash.
Neil Cole, Chairman and CEO of Iconix Brand Group, Inc., commented “The entertainment sector is an exciting area of growth for our Company. Through our Peanuts brand, we have a strong worldwide platform that we believe we can leverage as we add new entertainment properties to our portfolio. With the acquisition of Strawberry Shortcake, we will be expanding this platform as we gain new partnerships with top entertainment companies around the world.”
The iconic Strawberry Shortcake character made her debut 35 years ago, and quickly gained national appeal with her spunky yet innocent persona. Today, Strawberry Shortcake is a global brand with an impressive and diversified network of over 350 licensees.
Strawberry Shortcake has a strong international business, with revenue outside of the U.S. representing approximately 50% of total sales. The two largest international markets are Brazil and France, where the brand is highly recognized as a local based brand, marketed as Moranguinho in Brazil and Charlotte aux Fraises in France.
Leigh Anne Brodsky, Managing Director, Iconix Entertainment stated, “We are excited to be expanding the Iconix entertainment platform with such an iconic brand that resonates across multiple generations from daughters to mothers to grandmothers. We see many opportunities to grow this brand worldwide, and believe Strawberry Shortcake has a fresh fashion appeal that can play to both classic and modern tastes, with a built in play pattern which makes it great for physical and digital toys and games.”
This transaction is expected to close in approximately 30-45 days. Details of this transaction will be discussed on the Company's fourth quarter and full year 2014 earnings conference call. This deal is in line with the Company's historical acquisition metrics.
Other Company News:
In a separate press release, the Company today announced that it has acquired athletic brand PONY in North America with the option to expand global ownership and acquire PONY assets in additional territories.
About Iconix Brand Group, Inc.
Iconix Brand Group, Inc. owns, licenses and markets a growing portfolio of consumer brands including: CANDIE'S (R), BONGO (R), BADGLEY MISCHKA (R), JOE BOXER (R), RAMPAGE (R), MUDD (R), MOSSIMO (R), LONDON FOG (R), OCEAN PACIFIC (R), DANSKIN (R), ROCAWEAR (R), CANNON (R), ROYAL VELVET (R), FIELDCREST (R), CHARISMA (R), STARTER (R), WAVERLY (R), ZOO YORK (R), SHARPER IMAGE (R), UMBRO (R), LEE COOPER (R), ECKO UNLTD. (R), and MARC ECKO (R). In addition, Iconix owns interests in the ARTFUL DODGER (R), MATERIAL GIRL (R), PEANUTS (R), ED HARDY (R), TRUTH OR DARE (R), BILLIONAIRE BOYS CLUB (R), ICE CREAM (R), MODERN AMUSEMENT (R), BUFFALO (R), NICK GRAHAM (R) and PONY (R) brands. The Company licenses its brands to a network of leading retailers and manufacturers that touch every major segment of retail distribution from the luxury market to the mass market in both the U.S. and worldwide. Through its in-house business development, merchandising, advertising and public relations departments, Iconix manages its brands to drive greater consumer awareness and equity.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995.
The statements that are not historical facts contained in this press release are “forward-looking statements” within the meaning of U.S. federal securities laws that involve a number of known and unknown risks, uncertainties and other factors, all of which are difficult or impossible to predict and many of which are beyond the control of the Company, which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, but are not limited to, uncertainty regarding the results of the Company's acquisition of additional licenses, continued market acceptance of current products and the ability to successfully develop and market new products particularly in light of rapidly changing fashion trends, the impact of supply and manufacturing constraints or difficulties relating to the Company's licensees' dependence on foreign manufacturers and suppliers, uncertainties relating to customer plans and commitments, the ability of licensees to successfully market and sell branded products, competition, uncertainties relating to economic conditions in the markets in which the Company operates, the ability to hire and retain key personnel, the ability to obtain capital if required, the risks of litigation and regulatory proceedings, the risks of uncertainty of trademark protection, the uncertainty of marketing and licensing acquired trademarks and other risks detailed in the Company's filings with the Securities and Exchange Commission. The words “believe”, “anticipate,” “expect”, “confident”, “will”, “project”, “provide” “guidance” and similar expressions identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statement was made, and the Company undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances that may arise after the date of such statements.
