Rapper/Mogul, Jay-Z
has entered into a deal to sell Rocawear
for $204 million in cash to the Iconix
Brand Group. Iconix is a company that markets brands like Candies, Joe Boxer, Mudd, Londen Fog, Ocean
Pacific, etc.
The deal can possibly net Jay-Z $35 million in Iconix
stock, if Rocawear meets certain
performance requirements over the next few years, according to reports.
“Iconix is a
pioneering new brand management model, and by combining Rocawear with their
platform, my team and I can focus on our strengths in design and lifestyle
marketing,” Jay-Z said in a
statement. “I’m also looking forward to
working with Neil Cole and the Iconix organization on other brand development
opportunities.”
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“This is the
largest acquisition Iconix has made and Rocawear is a brand that is increasing
in market share and has extraordinary potential for growth”, said Neil Cole, CEO of Iconix Brand
Group. “The leadership team is already in place to fulfill our mission
and we will maintain complete continuity within the business by having Jay and
his team in charge of all product development, licensing and marketing. Jay and
his partners in the operating company that manufactures all of the Rocawear
men’s apparel, Alex Bize and Norton Cher, will become our
licensee for the core business. Iconix will add talent and resources that I
believe will help make Rocawear a billion dollar global brand. This acquisition
will be transformative for Iconix in terms of its scale, the diversification it
brings to our portfolio of brands as well as having someone as talented as Jay-Z
joining our company and the many synergies that could bring.”
Jay-Z will
continue to be in charge of product development, marketing and licensing for Rocawear, which generally has over $700
million in annual retail sales. Iconix
has predicted that Rocawear will do
well as far as royalty revenue within the first 12 months of the agreement,
which is expected to close this month.
