Iconix Brand Group Inc, which owns and licenses fashion brands including Candie's, Bongo, Joe Boxer and Mossimo, is stepping into the homewares market for the first time.

Yesterday (6 September) it revealed plans to buy licensing company Official Pillowtex LLC for $231m in cash. An additional $15m will be paid if the brands surpass specific revenue targets.

Pillowtex's home brands include Cannon, Royal Velvet, Fieldcrest and Charisma, which are estimated to generate royalty revenues of between $35m and $37m in 2008.

Neil Cole, chairman and CEO, said: "We believe that the home industry is an ideal fit for our first acquisition outside of fashion as there is a lack of innovative marketing and differentiation among brands.

"I believe that our marketing expertise will enable us to maximise the potential of these iconic brands and realise numerous growth opportunities."