Iconix Completes Deal to Go Private

Iconix Brand Group is the latest company to get out from under the scrutiny of Wall Street.

On Monday, the New York-based brand manager completed its deal to be purchased by Lancer Capital in an all-cash deal for $3.15 a share, which totals $585 million including debt. Iconix, which owns Starter, Candie’s, London Fog, Umbro, Zoo York, Ocean Pacific and other brands, had been exploring strategic alternatives for more than a year before making the deal with Lancer in June.

One of the principals of Lancer is Avram Glazer whose family owns the Tampa Bay Buccaneers who holds a majority stake in the Manchester United soccer club.

Upon completion of the deal, expected for Wednesday, the shares of common stock of Iconix will be delisted and will cease to trade on the Nasdaq exchange.

Iconix traces its roots to 2005 when Neil Cole, who ran Candie’s, changed business models when he switched the company’s approach from manufacturing goods to owning names and licensing them to others. The approach was successful for a while but after Cole stepped down in 2015, the company found itself the target of a Securities and Exchange Commission investigation into its accounting. Iconix reached a settlement in the matter and paid a civil penalty of $5.5 million in December 2019.

The company signed 190 license agreements last year, representing $134 million in total minimum royalties.

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