Iconix Brand Group, Inc. announced that it has partnered with The Licensing Company ("TLC") to further develop and expand the Iconix portfolio of brands in Europe through a newly formed subsidiary, Iconix Europe LLC.
As part of the transaction, an investment group led by TLC and Albion Equity Partners LLP acquired a 50% interest in Iconix Europe in exchange for $4 million and Iconix retained a 50% interest, along with a right entitling it to the first $6 million of distributions. Distributions above $6 million will be split 50/50 between the parties.
The business model of Iconix Europe will be similar to the Iconix strategy of signing traditional and direct-to-retail (DTR) licensing agreements for the Iconix portfolio of brands. There are 11 existing licensing agreements in the region.
Neil Cole, Chairman and CEO of Iconix, commented, "We are excited to be partnering with TLC, who are recognized as licensing experts in the European marketplace. With early signs of success in our recently formed international partnerships in China and Latin America, we have found that having local expertise with local resources around the world is instrumental to the success of rolling out our brands globally. International expansion remains an important initiative for our organic growth, and we look forward to working with TLC to grow our brands through this new venture."
Melvin Thomas, CEO and Co- Founder of TLC stated, "This is an important relationship for both TLC and the European Retail market place. We are excited to be partnering with Iconix who have clearly helped re-define the licensing and brand extension business globally. TLC is uniquely qualified and respected throughout Europe and we will be looking to translate the Iconix model and brand assets into real industry success through our local offices in London, Munich and Paris."
Iconix Europe marks the third international partnership for the Company. Iconix also has partnerships with Silas Chou's Novel Fashions in China, and with The Falic Group in Latin America. Including the forthcoming office of Iconix Europe, Iconix has locally based personnel in New York, Hong Kong, Panama City and London.