Iconix Brand Acquires Remaining 50% Of Iconix China From Its JV Partner

(RTTNews) - Iconix Brand Group Inc. (ICON) announced that it has acquired the remaining 50% of Iconix China from its joint venture partner Novel Fashion Brands Limited, owned by the Chou family, for $56.4 million, of which $40.4 million was paid in cash and $16 million was paid in the Company's common stock.

Iconix China was formed in September 2008. The operating model, different from Iconix' traditional licensing model has been to attract entrepreneurs and fast-growing local Chinese companies, providing them with an Iconix brand in which they invest through the build-out of stand-alone stores and shop-in-shops, and in return Iconix China receives an equity stake in the newly formed venture.

This transaction provides Iconix with full control and ownership of Iconix China, which owns equity stakes in two joint ventures with the recently public Shanghai La Chapelle that can be put to Shanghai La Chapelle for cash; publicly traded shares in China Outfitters; equity stakes in an additional six retail ventures of which four have plans to go public in the next 5 years; control over a portfolio of 15 unplaced brands; and an office and staff in Hong Kong dedicated to Iconix China.