Iconix Brand Group has agreed to purchase the Danskin line of women's active wear, leg wear, dance wear, yoga apparel and fitness equipment for US$70m.

The transaction is subject to Danskin stockholder approval.

The deal includes a contingent payment of an additional $15m, payable in cash or stock, triggered by the brand exceeding certain revenue and performance targets. The transaction, which is self-funded from Iconix's cash reserves, is anticipated to close in March 2007.

Iconix, whose brands include Joe Boxer and Mossimo, would also enter into a license agreement with the seller when the deal is closed, to continue operating the Danskin wholesale business including its freestanding retail stores.

The company said that Carol Hochman, president and CEO of Danskin, and her team would continue as Iconix's licensee.

She said: "We have made a lot of progress expanding this great brand and implementing our multi-channel distribution strategy but the missing ingredient has been the marketing strategy and investment needed to complete our vision. The Iconix team has exciting plans for Danskin and I am looking forward to working closely with them to grow the business."

Danskin is sold through stores including Wal-Mart, 15 Danskin boutiques and Danskin.com.

Neil Cole, chairman and CEO of Iconix said: "Danskin is one of the most established and recognised active wear brands in the world and we are thrilled to add it to our portfolio and to be partnering with Carol and her team as our licensee. Upon closing, this acquisition will further our diversification strategy by giving us a strong presence in the rapidly growing active wear, yoga and fitness market. We are also excited to have the opportunity to work with Wal-Mart on 'Danskin Now.'"