Iconix Brand Group announced it has acquired the worldwide master license for the Ed Hardy brand from Nervous Tattoo. Previously, Iconix had a small investment in the brand through its joint venture with Don Ed Hardy.
Iconix, the world's second largest licensor according to License! Global magazine, paid $55 million plus a $7 million earn-out for this acquisition. As part of the transaction, Nervous Tattoo will pre-pay $7 million in royalties and continue as a licensee for Ed Hardy t-shirts, hats and hoodies.
Under the agreement, Iconix will gain control of the licensing and marketing, and increase its total ownership stake in the Ed Hardy brand to 85 percent. On a pro-forma consolidated basis, Iconix estimates that the brand will generate total annual royalty revenue of approximately $15-16 million.
"We are excited to be able to utilize our marketing and licensing expertise to reenergize the Ed Hardy brand,” says Neil Cole, chairman and chief executive officer of Iconix. “The brand has an extremely high level of consumer awareness in the United States as well as very strong international business, and we believe our company will be able to add real value."