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Danskin, Inc. Announces Definitive Agreement to Sell its Intellectual Property to Iconix Brand Group, Inc. PR Newswire - February 22, 2007 8:37 AM ET
Related Quotes Symbol Last Chg DANS Trade 0.13 +0.11 ICON Trade 22.36 +0.76 Real time quote.
Danskin, Inc. (OTC:PK: DANS.PK) ("Danskin" or the "Company") today announced that it has entered into a definitive agreement to sell its Danskin(R) intellectual property, to Iconix Brand Group, Inc. ("Iconix"). The transaction is anticipated to close in March 2007. The transaction is subject to customary closing conditions including clearance under the Hart-Scott-Rodino Anti Trust Improvements Act of 1976 as amended and Danskin stockholder approval.
The purchase price for the transaction will be $70 million with a contingent payment of $15 million, payable in cash or stock, triggered by the brand exceeding certain revenue and performance targets. If paid in Iconix stock and the stock appreciates during the earnout period, or thereafter, the Company could earn up to an additional $7.5 million.
As part of the transaction, Danskin will enter into a license agreement with Iconix to continue to operate the Danskin(R) wholesale business, including its freestanding retail stores and its internet merchant site, Danskin.com.
Donald Schupak, Danskin's Chairman said "The transaction will provide capital for growth of the Danskin(R) wholesale business and, at the same time, monetize its intellectual properties, enhancing opportunities to increase shareholder value. Carol Hochman and her team have done an exceptional job expanding this great brand and implementing a multi-channel distribution strategy in a markedly undercapitalized environment. In addition to providing working capital, Iconix marketing support will help complete the Company's vision for the Brand."
Danskin, Inc. (OTC:PK: DANS.PK) 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 its own freestanding Danskin boutiques and its internet merchant site Danskin.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995. The statements that are not historical facts contained in this press release are forward looking statements that involve a number of known and unknown risks, uncertainties and other factors, all of which are difficult or impossible to predict and many of which are beyond the control of the Company, which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. Such factors include, but are not limited to, uncertainty regarding the results of the Company's acquisition of additional licenses, continued market acceptance of current products and the ability to successfully develop and market new products particularly in light of rapidly changing fashion trends, the impact of supply and manufacturing constraints or difficulties relating to the Company's licensees' dependence on foreign manufacturers and suppliers, uncertainties relating to customer plans and commitments, the ability of licensees to successfully market and sell branded products, competition, uncertainties relating to economic conditions in the markets in which the Company operates, the ability to hire and retain key personnel, the ability to obtain capital if required, the risks of litigation and regulatory proceedings, the risks of uncertainty of trademark protection, the uncertainty of marketing and licensing acquired trademarks and other risks detailed in the Company's SEC filings. The words "believe", "anticipate," "expect", "confident", "project", provide "guidance" and similar expressions identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward looking statements, which speak only as of the date the statement was made.
Contact: John A. Sarto Executive Vice-President and Chief Financial Officer Danskin, Inc. 212-764-4630
Margaret B. Pritchard SVP Business Development, General Counsel and Secretary Danskin, Inc. 212-764-4630
SOURCE Danskin, Inc.
Posts: 4071 | Registered: Dec 2005
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COMPANY NEWS AND PRESS RELEASES FROM OTHER SOURCES:
Danskin, Inc. Announces Definitive Agreement to Sell its Intellectual Property to Iconix Brand Group, Inc.
NEW YORK, Feb 22, 2007 /PRNewswire-FirstCall via COMTEX/ -- Danskin, Inc. (OTC:PK: DANS.PK) ("Danskin" or the "Company") today announced that it has entered into a definitive agreement to sell its Danskin(R) intellectual property, to Iconix Brand Group, Inc. ("Iconix"). The transaction is anticipated to close in March 2007. The transaction is subject to customary closing conditions including clearance under the Hart-Scott-Rodino Anti Trust Improvements Act of 1976 as amended and Danskin stockholder approval. The purchase price for the transaction will be $70 million with a contingent payment of $15 million, payable in cash or stock, triggered by the brand exceeding certain revenue and performance targets. If paid in Iconix stock and the stock appreciates during the earnout period, or thereafter, the Company could earn up to an additional $7.5 million.
As part of the transaction, Danskin will enter into a license agreement with Iconix to continue to operate the Danskin(R) wholesale business, including its freestanding retail stores and its internet merchant site, Danskin.com.
Donald Schupak, Danskin's Chairman said "The transaction will provide capital for growth of the Danskin(R) wholesale business and, at the same time, monetize its intellectual properties, enhancing opportunities to increase shareholder value. Carol Hochman and her team have done an exceptional job expanding this great brand and implementing a multi-channel distribution strategy in a markedly undercapitalized environment. In addition to providing working capital, Iconix marketing support will help complete the Company's vision for the Brand."
Danskin, Inc. (OTC:PK: DANS.PK) 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 its own freestanding Danskin boutiques and its internet merchant site Danskin.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995. The statements that are not historical facts contained in this press release are forward looking statements that involve a number of known and unknown risks, uncertainties and other factors, all of which are difficult or impossible to predict and many of which are beyond the control of the Company, which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. Such factors include, but are not limited to, uncertainty regarding the results of the Company's acquisition of additional licenses, continued market acceptance of current products and the ability to successfully develop and market new products particularly in light of rapidly changing fashion trends, the impact of supply and manufacturing constraints or difficulties relating to the Company's licensees' dependence on foreign manufacturers and suppliers, uncertainties relating to customer plans and commitments, the ability of licensees to successfully market and sell branded products, competition, uncertainties relating to economic conditions in the markets in which the Company operates, the ability to hire and retain key personnel, the ability to obtain capital if required, the risks of litigation and regulatory proceedings, the risks of uncertainty of trademark protection, the uncertainty of marketing and licensing acquired trademarks and other risks detailed in the Company's SEC filings. The words "believe", "anticipate," "expect", "confident", "project", provide "guidance" and similar expressions identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward looking statements, which speak only as of the date the statement was made.
Contact: John A. Sarto Executive Vice-President and Chief Financial Officer Danskin, Inc. 212-764-4630
Margaret B. Pritchard SVP Business Development, General Counsel and Secretary Danskin, Inc. 212-764-4630
SOURCE Danskin, Inc.
CONTACT: John A. Sarto, Executive Vice-President and Chief Financial Officer, or Margaret B. Pritchard SVP Business Development, General Counsel and Secretary both of Danskin, Inc., +1-212-764-4630
Copyright (C) 2007 PR Newswire. All rights reserved
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COMPANY NEWS AND PRESS RELEASES FROM OTHER SOURCES:
Iconix Brand Group Announces Definitive Agreement to Purchase Danskin(R) Brand
NEW YORK, Feb 22, 2007 /PRNewswire-FirstCall via COMTEX/ -- Iconix Brand Group, Inc. (Nasdaq: ICON) ("Iconix" or the "Company") today announced that it has entered into a definitive agreement to purchase the brand Danskin(R) from Danskin, Inc. ("Seller" or "Danskin"). 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 (R)" 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(R) 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(R).'"
Carol Hochman, CEO of Danskin commented, "We have made a lot of progress expanding this great brand and implementing our multi-channel distribution strategy but the missing ingredient has been the marketing strategy and investment needed to complete our vision. The Iconix team has exciting plans for Danskin(R) and I am looking forward to working closely with them to grow the business."
Additional details of the Danskin acquisition will be addressed on the Company's fourth quarter and 2006 year end earnings conference call scheduled for Tuesday March 6, 2007 at 10:00 am EST. The transaction is subject to customary closing conditions including clearance under the Hart-Scott-Rodino Anti Trust Improvements Act of 1976 as amended and Danskin stockholder approval.
Iconix Brand Group Inc. (Nasdaq: ICON - News) owns, licenses and markets a growing portfolio of consumer brands including CANDIE'S (R), BONGO (R), BADGLEY MISCHKA (R), JOE BOXER (R), RAMPAGE (R), MUDD (R), LONDON FOG (R), MOSSIMO (R) and OCEAN PACIFIC (R). The Company licenses it 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.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995. The statements that are not historical facts contained in this press release are forward looking statements that involve a number of known and unknown risks, uncertainties and other factors, all of which are difficult or impossible to predict and many of which are beyond the control of the Company, which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. Such factors include, but are not limited to, uncertainty regarding the results of the Company's acquisition of additional licenses, continued market acceptance of current products and the ability to successfully develop and market new products particularly in light of rapidly changing fashion trends, the impact of supply and manufacturing constraints or difficulties relating to the Company's licensees' dependence on foreign manufacturers and suppliers, uncertainties relating to customer plans and commitments, the ability of licensees to successfully market and sell branded products, competition, uncertainties relating to economic conditions in the markets in which the Company operates, the ability to hire and retain key personnel, the ability to obtain capital if required, the risks of litigation and regulatory proceedings, the risks of uncertainty of trademark protection, the uncertainty of marketing and licensing acquired trademarks and other risks detailed in the Company's SEC filings. The words "believe," "anticipate," "expect," "confident," "project," provide "guidance" and similar expressions identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward looking statements, which speak only as of the date the statement was made.
Contact: David Conn Executive Vice President Iconix Brand Group 212.730.0030
Joseph Teklits Integrated Corporate Relations 203.682.8200
SOURCE Iconix Brand Group, Inc.
CONTACT: David Conn, Executive Vice President, Iconix Brand Group, +1-212-730-0030; Joseph Teklits, Integrated Corporate Relations, +1-203-682-8200, for Iconix Brand Group, Inc.
I was trying to find out what the float was on this...most of the places I have been looking has it listed as unavailable. The stock was removed from the OTCBB in '03 though...something like this agreement should be very good for this stock, I would think.
-------------------- Study before you buy, Sell before you think about it.... Posts: 3903 | From: Gulf Coast | Registered: Jun 2006
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I'm in the process of contacting both companies. The fact that ICON is putting out their own PR for the deal is HUGE. Waiting for call backs, but I'll keep you updated!!
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Posted by: MrTrendGreen In reply to: None Date:2/22/2007 12:56:52 PM Post #of 91
Ok check out this Danskin and Iconix comparision./
Here is the last revs for Danskin in the last filing they had./
FinancialsQ3 (09/02) Total Revenue $23.21M Net Income $.25M
Ok now check out this filing from Iconix that is TRADING AT 22.92 a share!/
FinancialsQ3 (09/06) Total Revenue $22.11M Net Income $7.95M EPS $.18
Danskin earned more revenue in 2002 than Iconix earned in 2006!!! Danskin has only INCREASED their market share in ladie's clothing since then, so could they make more than Iconix that is TRADING AT 22.92 a share?! Not sure but I see Danskin all over the place (WalMart, JcPenney, Dilliards, etc) and I am sure glad I bought in today!
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