Home / Knowledge / News / Apparel/Garments / Iconix Brands picks majority stake in Buffalo
Iconix Brands picks majority stake in Buffalo
04
Feb '13
Iconix Brand Group, Inc. announced that it has acquired a 51% interest in the Buffalo David Bitton ("Buffalo") brand from Buffalo International ULC, owned by David Bitton and his brothers. To acquire the trademark, Iconix formed a new joint venture company with Buffalo International ULC. Iconix will control this joint venture and consolidate its results.  Buffalo International ULC will be the core licensee for the new joint venture.

Founded in 1985, Buffalo is a lifestyle brand consisting of denim, sportswear, activewear, and accessories.  Buffalo is primarily sold through better department stores including Macy's, Dillard's and Lord  & Taylor, and has 30 stand-alone retail stores, mainly in Canada, operated by the core licensee.

Neil Cole, CEO, Iconix Brand Group, Inc., commented, "The Bitton brothers have built a powerful lifestyle brand. We look forward to leveraging our licensing and brand management expertise to further grow the business and expand its retail footprint in the U.S. and Canada, as well as internationally."

Gabriel Bitton, CEO, Buffalo International ULC, commented, "Iconix is recognized as the leader in brand management and has a strong track record of building worldwide brands. We are excited to be working with Neil Cole and the rest of the Iconix team to grow Buffalo to the next level through Iconix's strong and proven global platform."

For its 51% interest in Buffalo, Iconix paid $76.5 million in cash.  On an annualized basis, the Company expects the Buffalo brand to generate approximately $25 million in royalty revenue with an EBITDA margin of approximately 75-80% for the new joint venture.

2013 Guidance:

The Company is raising its 2013 revenue guidance to a range of $415-$425 million from $395-$405 million.  The Company is raising its 2013 non-GAAP diluted EPS guidance to a range of $2.00-$2.10 from $1.85-$1.95, and its 2013 GAAP diluted EPS guidance to a range of $1.90-$2.00 from $1.75-$1.85.

The Company's increase in its guidance is related to the Buffalo acquisition and increased share repurchase activity. To reflect the increased share repurchases, the Company's weighted average diluted share count is estimated to be approximately 67-68 million for 2013.  Since the authorization of its current $200 million share repurchase plan, the Company has repurchased approximately $175 million or 13% of its shares outstanding.

Iconix Brands

Must ReadView All

Textiles | On 30th Mar 2017

India Inc should work for July 1 GST roll out: Fin sec

The Goods and Services Tax (GST) will take India into a very exciting ...

Textiles | On 30th Mar 2017

Lok Sabha approves 4 supplementary GST legislations

The Lok Sabha has approved four supplementary Goods and Services Tax...

Courtesy: ShopKeep

Information Technology | On 30th Mar 2017

Shopkeep partners with software provider BigCommerce

ShopKeep, the cloud-based technology solution that transforms an iPad ...

Interviews View All

Dharmendra Shah
Ozone PB Spintex Limited

‘We have made huge investments to ensure quality yarn production.’

Ajay Ghariwala
Luthra Group

We are ready to adopt or follow every opportunity

Kamlesh Vaghela
RK Textiles

Very few machinery manufacturers have R&D units

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
March 2017

March 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search