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NEW YORK, Jan. 7 — Iconix Brand Group, Inc. (Nasdaq: ICON) today announced that it has entered into a joint venture with New Brands Americas LLC (“New Brands”) to further develop and exploit the Iconix brands in Latin America. New Brands is a member of The Falic Group, a Florida based consortium owned and operated by Simon, Jerome and Leon Falic.
The joint venture company, Iconix Latin America, will focus on maximizing royalty revenue via existing and new licensing agreements for the Iconix portfolio of brands in Mexico, Central America, South America, and the Caribbean, which today number 16. In exchange for $6 million plus other commitments, New Brands received a 50% interest in the joint venture, which will also have an option to purchase rights to future brands acquired by Iconix.
Neil Cole, Chairman and CEO of Iconix, commented, “We are pleased to announce the formation of Iconix Latin America with The Falic Group. The Falic brothers have extensive expertise and contacts in the Latin American market. Having locally based partners with knowledge of the different cultures and markets that comprise this region will significantly accelerate the growth of our brands throughout this territory and help us maximize revenue from our existing licensing base in Latin America. Different from our joint venture in China, Iconix Latin America will be run as a traditional licensing business with near-term revenue opportunity.”
Leon Falic, President of New Brands, commented, “This exciting venture will enable us to capitalize on the ever growing Latin American market for proven U.S. brands. Because of recent demographic changes in Latin America, we feel that this a unique opportunity to bring the Iconix brands to a thriving new group of consumers there. We are looking forward to working with Neil and his team at Iconix to maximize each brand.”
Iconix Latin America is the second international joint venture for Iconix. Iconix China, a Hong Kong company formed by Iconix and Novel Fashion Brands Limited, led by Silas Chou and family, was completed in September 2008 to develop the Iconix brands in Greater China.
About Iconix Brand Group, Inc:
Iconix Brand Group, Inc. (Nasdaq: ICON – News) owns, licenses and markets a growing portfolio of consumer brands including CANDIE’SÂ®, BONGOÂ®, BADGLEY MISCHKAÂ®, JOE BOXERÂ®, RAMPAGEÂ®, MUDDÂ®, LONDON FOGÂ®, MOSSIMOÂ®, OCEAN PACIFICÂ®, DANSKINÂ®, ROCA WEARÂ®, CANNONÂ®, ROYAL VELVETÂ®, FIELDCRESTÂ®, CHARISMAÂ®, STARTERÂ® and WAVERLYÂ®. The Company licenses its brands to a network of leading retailers and manufacturers that touch every major segment of retail distribution from the luxury market to the mass market in both the U.S. and around the world. Iconix, through its in-house advertising, promotion and public relations agency, markets its brands to continually drive greater consumer awareness and equity.
About New Brands Americas LLC:
New Brands Americas LLC is a member of The Falic Group of companies, which are involved in the retail sale, manufacture and international distribution of luxury goods. The Falic Group owns and operates Duty Free Americas, Inc., the largest duty free retail store operator in the Americas, with over 150 duty free shops located in major international airports and border crossings. The Falic Group also owns the House of Christian Lacroix and several fragrance and cosmetics brands, including Urban Decay, Hard Candy and Animale, and holds the worldwide license to manufacture and distribute fragrances and cosmetics under the Perry Ellis brand name. Members of The Falic Group serve as international distributors of numerous luxury brands, such as Diageo, Pernod Ricard, Moet Hennessy, Lancome, Christian Dior, Gucci, Bvlgari, Cartier, Montblanc, Hermes, Ed Hardy, Guess and others.