Sponsors
Billabong ▲ +0.005 | PPR ▼ -1.10 | American Apparel ▼ -0.023 | The Buckle ▼ 0.00 | Columbia ▲ +0.73 | Deckers Outdoor ▼ -0.56 | Dicks ▼ -0.25 | Foot Locker ▲ +0.14 | Genesco ▲ +0.36 | Iconix Brand Group ▼ 0.00 | Jarden Corp ▼ -0.97 | Nordstrom ▼ -0.33 | Luxottica ▲ +0.48 | Nike ▼ -0.16 | Pacific Sunwear ▼ -0.04 | Skullcandy ▼ -0.03 | Sport Chalet - 0 | Urban Outfitters ▼ -0.49 | VF Corp ▼ -0.21 | Quiksilver ▼ -0.04 | Zumiez ▲ +0.28 | Macys ▼ -0.43 | Tillys ▲ +0.46 |
Ticker Sponsor
Readers Say
Great insight into the issues
Great insight into the issues

I am a big fan of Tiffany and her team as well as an avid reader of Shop-Eat-Surf. I shop, I eat, I surf -- I should pay.

- By Kevin Bailey, President, Vans
Useful on a daily basis
Useful on a daily basis

It's well balanced information that is useful on a daily basis. I'm very satisfied with the Executive Edition. I start each day with SES and a big cup of coffee!

- By Tom Ruiz, EVP Sales, Volcom
Industry Insight

SHACC: Trailblazers in Women's surfing exhibit opens April 25.
ROTH CAPITAL PARTNERS: Zumiez comps exceed estimates.

Details on Industry Insight.


Tiffany Montgomery
Print This Article

Iconix to buy Zoo York and Ecko brands

By Tiffany Montgomery
October 27, 2009 6:39 AM

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.

 


Articles You Might Have Missed