Iconix Acquires Athletic Brand PONY In North America
NEW YORK, Feb. 3, 2015-- Iconix Brand Group, Inc. (Nasdaq: ICON) ("Iconix" or the "Company"), today announced that it has acquired the North American rights to the athletic brand PONY® and related intangible assets in partnership with Anthony L&S Athletics, LLC ("AL&S") for $37 million in cash from Symphony Holdings, Limited. The assets will be purchased through a newly formed subsidiary, which will be owned 75% by Iconix and 25% by AL&S. Subsequent to this transaction, Iconix has the option to expand global ownership of the brand and acquire the PONY assets in additional territories.
"Sports has been one of the strongest and fastest growing segments of our portfolio, and a business that has proven to be truly global in its appeal," commented Neil Cole, Chairman and CEO of Iconix. "With the addition of PONY, we believe we can leverage our existing sports platform including our Danskin, Starter and Umbro brands, which represent over two billion of global retail sales, and create significant value for the brand."
Formed in 1972 in New York City, PONY quickly became one of the top athletic footwear brands worldwide appearing on professional athletes in the World Cup, NBA, NFL, MLB and Boxing. Bridging the gap between on the move, on the court, downtime and after hours, PONY has the consumer covered from fashion to function.
"There is high demand for authentic athletic lifestyle brands," commented Seth Horowitz, COO of Iconix. "With PONY's strong brand recognition across both male and female consumers, we believe we can grow PONY throughout North America, creating a profitable multi-tiered distribution strategy similar to our other successful sports brands. Further, we plan to leverage our existing global platform as we explore opportunities in additional geographies."
In exchange for its 25% interest in the partnership, AL&S contributed its previously held perpetual rights to the PONY brand in the U.S. and Canada and will be the core footwear licensee going forward.
Santino LoConte, Co-owner/COO of AL&S commented, "We are excited to partner with Iconix, and believe by combining our footwear expertise with Iconix' global sports platform, we can build on PONY's strong heritage in footwear and create tremendous growth for the brand."
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.
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.
About AL&S, LLC
An industry leader for the design, development and distribution of men's fashion footwear, AL&S is renowned for its long-proven ability to build prominent men's lifestyle brands on a global scale. At the core of AL&S's mission are three definitive hallmarks: quality of product, great value, and consistency of branding.
AL&S owns, licenses, markets, and distributes a growing portfolio of consumer brands including PONY, ETONIC, G-Star RAW Footwear, Levi's Strauss & Co Footwear, & AL&S Private Label Brands. Over the past 25 years, AL&S had delivered value to not only the consumer, but also to its partnering retail and production partners, enabling fiscal success and long-term brand sustainability.
About Symphony Holdings Limited
Symphony Holdings Limited (Stock code:01223) is a company listed on the main board of the Hong Kong Stock Exchange (HKEX) since 1995. The Company is principally engaged in the retailing and wholesale of internationally renowned brands. In addition, it manages and operates two outlet malls in PRC- one is in Shenyang and the other one in Tianjin. The Shenyang outlet mall is jointly developed together with a leading Japanese conglomerate. The Company's latest move is towards the management of duty free business.
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 o r 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.
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SOURCE Iconix Brand Group, Inc. through PRNewswire by press release ©