Iconix takes on full ownership of Iconix Canada
Iconix Brand Group announced on Thursday that it has acquired the remaining 50 percent interest in Iconix Canada from its joint venture partner for $19 million.
The brand management company paid $12 million upon closing, and will pay the remaining $7 million over the next two years.
"International expansion is a key part of our growth strategy, and Canada represents an opportunity to advance our objectives,” said John Haugh, Chief Executive Officer of Iconix, in a news statement. “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."
The company equally announced its decision to keep a 51 percent interest in the Buffalo brand, which its had previously planned on 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% control of Iconix Canada solidly positions us for organic growth in Canada," Haugh added.
Formed in 2013, Iconix Canada has licenses for brands including London Fog, Ecko Unltd., Charisma, Danskin, Rampage, Rocawear, Zoo York, Umbro, and more.
Iconix Brand Group saw revnue fall in 2016 following a year that Haugh described as “a year of transition for Iconix”.
For the full year ended December 31, 2016, licensing revenue was down by 3 percent to approximately $368.5 million, compared to $379.2 million in 2015.
For 2017, the company expects full year revenue to be in a range of approximately $350 million to $365 million.
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