CIT: West Coast team featured in Fashion Manuscript.
FSG LAWYERS: Represented Loomworks Apparel (P.J. Salvage) on its acquisiton by Delta Galil.
Details on Industry Insight.
Iconix, owner of Mossimo, Ocean Pacific, Roca Wear and a host of other brands, said this morning it will acquire a controlling interest in Ecko Brands, which include Zoo York, a popular line with skateboarders.
Iconix said the brands are a good candidate for Iconix's direct retail model, though the company did not say what type of distribution channel it is considering.
Iconix has formed partnerships with several retailers that sell its brands exclusively. Op is now sold at Wal-Mart stores, and Mossimo is at Target, for example.
Iconix will pay $63.5 million in cash, and the newly formed joint venture between Iconix and Ecko will receive $90 million in financing at a 7.5% interest rate. Iconix said its total purchase price for the acquisition is $109 million. Iconix will own 51 percent of the joint venture.
Iconix CEO Neil Cole said in a press release that the purchase price was favorable for Iconix.
"Iconix and our shareholders will benefit from this accretive transaction as we are acquiring a strong portfolio of consumer brands at an attractive multiple," he said.
Ecko operates under a licensing model, and the new joint venture is expected to generate $42 million to $44 million in annual net royalty revenue, with Iconix share totaling about $26 million annually.
Other brands Iconix owns include Candie's, Bongo, Badgley Mischka, Joe Boxer, Rampage, Mudd, London Fog and Danskin.