Iconix acquires master licence for Ed Hardy - Licensing.biz

Iconix acquires master licence for Ed Hardy

Firm increases its stake in the Nervous Tattoo property to 85 per cent.
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Iconix Brand Group now has a total ownership stake in the Ed Hardy property of 85 per cent, having sealed a deal with Nervous Tattoo for the worldwide master licence.

The ambitious firm has now gained control of all the licensing and functions to do with the brand. Iconix previously had a small investment in Ed Hardy through its joint venture with Don Ed Hardy.

Iconix is estimating that the brand will generate total annual royalty revenue of $15-$16 million.

The firm paid $55 million, plus a $7 million earn-out for the acquisition. As part of the deal, Nervous Tattoo will continue as a licensee for Ed Hardy t-shirts, hats and hoodies. It will pre-pay $7 million in royalties under its licence.

"We are excited to be able to utilise our marketing and licensing expertise to re-energise the Ed Hardy brand," said Neil Cole, chairman and CEO of Iconix. "The brand has an extremely high level of consumer awareness in the US, as well as very strong international business, and we believe our company will be able to add real value."


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