US: Iconix closes $45m Mudd buy
Iconix Brand Group has competed the acquisition of the Mudd brand from Mudd USA LLC for US$45m and 3,269,231 shares.
The company announced on 3 April it has signed a definitive deal to buy substantially all of Mudd's assets. It financed its acquisition through an increase in current asset-backed notes issued by a subsidiary.
Iconix has taken on 11 existing license agreements for Mudd and has entered into a new license for use of the name in the core denim business with Mudd and the brand's founder Dick Gilbert.
Mudd is estimated to generate between $18 and $20m in 2007 royalty revenue.
Chairman and CEO Neil Cole said: "We are very pleased to add Mudd to our growing portfolio of powerful brands. Mudd is a recognised leader not only in denim, but with established businesses in footwear, handbags, kid's apparel, eyewear and watches.
"This acquisition further diversifies our revenue base and presents another great opportunity for Iconix to apply its expertise in marketing and brand management to transform what is a hot junior label to an enduring life style brand."
Iconix's other brands include Candie's, Bongo, Badgley Mischka, Joe Boxer and Rampage.
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