Iconix Brand Group Inc is set to expand its brands in Europe after partnering with The Licensing Company on a new subsidiary.

Iconix, whose brands include Joe Boxer, London Fog, Mossimo and Roca Wear, said the new unit - called Iconix Europe LLC - will focus on traditional and direct-to-retail (DTR) licensing agreements.

The company also expects to record a pre-tax gain of $5-7m on the deal - and has lifted its full-year revenue guidance to $227-231m, up from earlier estimates of $215-220m.

As part of the transaction, an investment group led by The Licensing Company (TLC) and Albion Equity Partners LLP acquired a 50% interest in Iconix Europe for $4m.

Iconix has a 50% interest, along with a right entitling it to the first $6m of distributions. Distributions above $6m will be split 50/50 between the parties.

"With early signs of success in our recently formed international partnerships in China and Latin America, we have found that having local expertise with local resources around the world is instrumental to the success of rolling out our brands globally," said Iconix chairman and CEO Neil Cole. 

He added: "International expansion remains an important initiative for our organic growth, and we look forward to working with TLC to grow our brands through this new venture."

Melvin Thomas, CEO and co- founder of TLC, said: "We will be looking to translate the Iconix model and brand assets into real industry success through our local offices in London, Munich and Paris."

With over 2,000 active licensing contracts, including Coca Cola, National Trust, Jelly Belly and Cosmopolitan, TLC boasts more than $2.8bn in retail sales.

Iconix already has 11 existing licensing agreements in the region, and this latest deal marks the third international partnership for the company which also works with Silas Chou's Novel Fashions in China, and with The Falic Group in Latin America.