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Iconix to purchase women's wear brand Danskin

24 Feb '07

2 min read

Iconix Brand Group Inc announced that it has entered into a definitive agreement to purchase the brand Danskin from Danskin Inc. The transaction is anticipated to close in March 2007.

Danskin is a 125 year-old iconic brand of women's active wear, leg wear, dance wear, yoga apparel and fitness equipment. The brand is sold through better department, specialty and sporting goods stores, and through fifteen freestanding Danskin boutiques and Danskin.com. Danskin also has a partnership with Wal-Mart Stores for its "Danskin Now " brand of apparel and fitness equipment.

The purchase price for the transaction will be $70 million with a contingent payment of an additional $15 million, payable in cash or stock, triggered by the brand exceeding certain revenue and performance targets. The acquisition will be self-funded from the Company's cash reserves.

Iconix has also announced that, as of the closing, it will enter into a license agreement with the Seller, to continue to operate the Danskin wholesale business including the freestanding retail stores. Carol Hochman, President and CEO of Danskin, and her team will continue as Iconix's licensee to grow the Danskin department and sporting goods store business.

Neil Cole, Chairman and CEO of Iconix commented, "Danskin is one of the most established and recognized 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.'"

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