Iconix Brand Group and The Licensing Company have formed a new subsidiary - Iconix Europe - with the aim to further expand the Iconix portfolio of brands into new territories.
As part of the transaction, an investment group led by TLC and Albion Equity Partners acquired a 50 per cent interest in Iconix Europe in exchange for $4 million. Iconix retains a 50 per cent interest, along with a right entitling it to the first $6 million of distributions. Anything above this will be split 50/50 between the two parties.
The business model of Iconix Europe will be similar to its strategy of signing traditional and direct to retail licensing agreements for the Iconix portfolio. There are 11 existing licensing agreements in the region.
"We are excited to be partnering with TLC, who are recognised as licensing experts in the European marketplace," said Neil Cole, chairman and CEO of Iconix. "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."
Melvin Thomas, CEO and co-founder of TLC, added: "This is an important relationship for both TLC and the European retail marketplace. TLC is uniquely qualified and respected throughout Europe and 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."