US: Iconix buys Lee Cooper brand in $72m deal
Iconix will add the 100-year-old business to its line-up of owned and licensed of brands like Candie's, Bongo, Badgley Mischka, Joe Boxer and Umbro.
"We are excited to add another truly global brand to our portfolio and expect with the addition of Lee Cooper, our international business to represent approximately 33% of our overall business in 2013," Iconix Brand Group CEO Neil Cole said today (20 February).
"With Lee Cooper's portfolio of international licensees we look forward to leveraging these new relationships to further grow our worldwide footprint."
As well as denim, Lee Cooper has expanded into multiple lifestyle categories including men's and women's casual wear, footwear and accessories.
It operates as a pure licensing business with a group of 35 international licensees, including Landmark in the Middle East and Future Group in India, that are expected to generate $14m in annual royalty revenue in 2013.
The brand is sold in over 80 countries, predominantly in Europe, Asia and the Middle East and has around $500m in annual global retail sales.
Back in November Iconix said it remains focused on international expansion, which it wants to grow to 40% of its business. It also said it would continue to evaluate acquisition opportunities.
Recent deals have included a 51% stake in the Buffalo David Bitton brand for US$76.5m, and UK football brand Umbro, which it bought from Nike for US$225m.
Separately, Iconix said the addition of Lee Cooper would help lift 2013 revenues to $425-$435m, up from earlier forecasts for $415-$425m. And earnings per share are seen rising to $2.05-$2.15 from $2.00-$2.10 forecast earlier.
This report provides an update of business news in the following categories: acquisitions, divestments and mergers; company rebranding; company restructuring; corporate social responsibility (CSR); fi...
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