The brand management company also decides to hold on to its 51 percent interest in the Buffalo brand.
Under the terms of the agreement, Iconix will pay $12 million upon closing, with the remaining amount to be paid over the next two years.
“International expansion is a key part of our growth strategy, and Canada represents an opportunity to advance our objectives,” says John Haugh, chief executive officer, Iconix. “Today, Iconix is underpenetrated in Canada and we believe with the strength of our brands, we have room for growth. Iconix has a record of growth in territories where we have previously acquired full interest including Latin America and China, and we expect to continue this success through our full ownership of Iconix Canada.”
Formed in 2013, Iconix Canada currently holds licenses for brands including London Fog, Ecko Unltd., Charisma, Danskin, Rampage, Rocawear, Zoo York, Umbro, Fieldcrest, Royal
Additionally, Iconix will retain its 51 percent interest in the Buffalo brand.
“We have also made the strategic decision to retain our 51 percent interest in the Buffalo brand, which we had previously contemplated selling,” continues Haugh. “Buffalo has been a strong performing brand in both Canada and the U.S. We believe retaining our majority interest in the Buffalo brand and gaining 100 percent control of Iconix Canada solidly positions us for organic growth in Canada.”
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