ICONIX BRAND GROUP PLANS TO GO PRIVATE
Iconix Brand Group announced on Friday that it has entered into a definitive agreement to be acquired by Iconix Acquisition Corp., an affiliate of Lancer Capital, in order to take the brand management company private.
The all-cash transaction values Iconix at approximately $585 million, including net-debt.
Upon the terms and subject to the conditions of the agreement, Iconix Acquisition Corp will commence a tender offer to acquire all of the outstanding shares of Iconix’s common stock for $3.15 per share, in cash. The offer price per share of common stock represents a premium of 28.6 percent over Iconix’s closing share price on June 10th, the last trading day prior to the announcement, and a premium of approximately 46.5 percent over the 30-day average volume-weighted share price for the period ended June 10.
Shares not tendered in the offer will be acquired in a second-step merger at the same cash price as paid in the offer. Closing of the transaction is conditioned upon, among other things, satisfaction of a minimum tender condition, clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, and other customary closing conditions. Upon completion of the transaction, Iconix will become a private company. Iconix currently expects the transaction to close before the end of the third quarter of 2021.
“Today’s announcement represents the culmination of a year-long examination by our Board of Directors of strategic alternatives for the company,” said Bob Galvin, chief executive officer. “After a thorough and deliberative examination of all potential strategic alternatives, the Board of Directors determined that the transaction with Lancer provides the best value for our stockholders. We expect that Iconix will continue developing its brands and supporting its partners as a private company.”
The company’s brands include Mossimo, Ocean Pacific/OP, Danskin, Rampage, Joe Boxer, London Fog, Mudd, Candie’s, Buffalo, Starter, Rocawear, Zoo York, Ecko Unltd, Artful Dodger, Umbro, Lee Cooper, Ed Hardy, Pony, Royal Velvet, Canon, Fieldcrest, and Sharper Image.
