Rapper/mogul Shawn "Jay-Z" Carter has entered into a deal to sell clothing company Rocawear for $204 million in cash to the Iconix Brand Group, a company that licenses and markets such popular brands as Candies, Joe Boxer, Mudd, London Fog, Ocean Pacific and others. The deal, which was announced today, (Mar. 6) could also net Jay-Z $35 million in Iconix stock, if the Rocawear brand meets certain performance requirements over the next three-five years."Iconix is pioneering a new brand management model and by combining Rocawear with their platform, my team and I can focus on our strengths in design and lifestyle marketing." Jay-Z said. "I’m also looking forward to working with Neil Cole and the Iconix organization on other brand development opportunities."Jay-Z will continue to be in charge of all product development, marketing and licensing for Rocawear, which boasts annual retail sales of over $700 million. The rapper will retain his stake in the operating company the manufactures all of the Rocawear men’s apparel line, and the mogul’s two partners, Alex Bize and Norton Cher, will continue to run the manufacturing company. "This is the largest acquisition Iconix has made and Rocawear is a brand that is increasing in market share and has extraordinary potential for growth," said Neil Cole, Chairman and CEO of Iconix Brand Group commented. "The leadership team is already in place to fulfill our mission and we will maintain complete continuity within the business by having Jay and his team in charge of all product development, licensing and marketing. Jay and his partners in the operating company that manufactures all of the Rocawear men’s apparel, Alex Bize and Norton Cher, will become our licensee for the core business. Iconix will add talent and resources that I believe willhelp make Rocawear a billion dollar global brand. This acquisition will be transformative for Iconix in terms of its scale, the diversification it brings to our portfolio of brands as well as having someone as talented as Jay-Z joining our company and the many synergies that could bring."Iconix is forecasting that Rocawear, which was founded in 1995, will generate almost $43 million in royalty revenue during the first 12 months of the agreement.Iconix and Jay-Z have also reached a deal to form a new brand management/licensing company that will debut a new luxury brand titled The Shawn Carter Collection, which is due in stores in 2008.The deal is expected to close this month.
Rapper/mogul Shawn
"Jay-Z" Carter has entered into a deal to sell clothing company Rocawear
for $204 million in cash to the Iconix Brand Group, a company that licenses and
markets such popular brands as Candies, Joe Boxer, Mudd, London Fog, Ocean Pacific
and others. The
deal, which was announced today, (Mar. 6) could also net Jay-Z $35 million in
Iconix stock, if the Rocawear brand meets certain performance requirements over
the next three-five years."Iconix
is pioneering a new brand management model and by combining Rocawear with their
platform, my team and I can focus on our strengths in design and lifestyle
marketing." Jay-Z said. "I’m also looking forward to working with Neil
Cole and the Iconix organization on other brand development opportunities."Jay-Z
will continue to be in charge of all product development, marketing and licensing
for Rocawear, which boasts annual retail sales of over $700 million. The
rapper will retain his stake in the operating company the manufactures all of
the Rocawear men’s apparel line, and the mogul’s two partners, Alex Bize and Norton
Cher, will continue to run the manufacturing company. "This
is the largest acquisition Iconix has made and Rocawear is a brand that is increasing
in market share and has extraordinary potential for growth," said Neil Cole,
Chairman and CEO of Iconix Brand Group commented. "The leadership team is
already in place to fulfill our mission and we will maintain complete continuity
within the business by having Jay and his team in charge of all product development,
licensing and marketing. Jay and his partners in the operating company that manufactures
all of the Rocawear men’s apparel, Alex Bize and Norton Cher, will become our
licensee for the core business. Iconix will add talent and resources that I believe
willhelp make Rocawear a billion dollar global brand. This acquisition will
be transformative for Iconix in terms of its scale, the diversification it brings
to our portfolio of brands as well as having someone as talented as Jay-Z joining
our company and the many synergies that could bring."Iconix
is forecasting that Rocawear, which was founded in 1995, will generate almost
$43 million in royalty revenue during the first 12 months of the agreement.Iconix
and Jay-Z have also reached a deal to form a new brand management/licensing company
that will debut a new luxury brand titled The Shawn Carter Collection, which is
due in stores in 2008.The
deal is expected to close this month.
