Brand management company Iconix Brand Group has struck a deal to offload its equity interests in Umbro China Limited to HK Qiaodan Investment Limited.
The sale of Umbro China, a wholly-owned subsidiary of Iconix Luxembourg, includes the Umbro sports brand in the People’s Republic of China, Hong Kong, Taiwan and Macau. The US$62.5m deal is expected to close around 15 September.
Iconix said in a Securities and Exchange Commission (SEC) filing it expects to use the net proceeds from the sale to repay amounts due under its existing financing arrangements and for general corporate purposes.
The firm specialises in marketing, merchandising and licensing its brand portfolio which includes Ed Hardy, Lee Cooper and Pony.
In its most recent quarterly results, Iconix reported a 1% rise in total revenue to $43.2m for the period ended 31 December. GAAP net income reflected a loss of $95m, compared to a loss of $69.1m a year ago.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData
