Iconix Brand Group finally got its wish: The brand management firm on Thursday said it entered into an agreement to purchase Official Pillowtex LLC, a home textiles licensing firm, for $231 million in cash with contingent payments of up to an additional $15 million in cash, dependent on surpassing certain revenue targets.
As first reported in April, Pillowtex has been on Iconix's radar for quite some time.
Neil Cole, chairman and chief executive officer of Iconix, said the parties have been in on-and-off talks for over a year and a half. The newest addition to the Iconix umbrella, expected to close later this year, has total aggregate guaranteed royalty revenue of $160 million, or 65 percent of the purchase price. The primary Pillowtex brands are Cannon, Royal Velvet, Fieldcrest and Charisma, and the four lines alone are expected to generate between $35 million and $37 million in 2008 royalty revenue.
The ceo isn't ruling out brand extensions into home for Iconix's apparel brands, nor an expansion of the home brands into categories such as tabletops.
Cole also hinted there could be additional deals on the horizon in fashion and apparel before yearend, including a possible one in the sporting goods sector.
"We make sure we do good deals, not just any deals. There are some interesting opportunities for this year and we continue to be acquisitive," Cole said. He perceives the current lack of liquidity to finance deals that has impacted private equity firms a plus for Iconix because "some might not be looking into areas that we are."
Breaking News: @louisvuitton's men's artistic director @mrkimjones is leaving the French fashion house after nearly 7 years. Jones joined Louis Vuitton in 2011, following a three year tenure as creative director of British luxury goods brand Alfred Dunhill. Jones is to exit Louis Vuitton after showing his fall 2018 collection for the brand in Paris on Thursday. Read the full exclusive story on WWD.com. Link in bio. #wwdnews #wwdfashion
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Harrods plans to remove the famous statue of Princess Diana and Dodi Al Fayed from the bottom of the Egyptian escalators and hand it back to Mohamed Al-Fayed. “We are very proud to have played our role in celebrating the lives of Diana, Princess of Wales and Dodi Al Fayed at Harrods and to have welcomed people from around the world to visit the memorial for the past 20 years,” said Michael Ward, Harrods managing director. “With the announcement of the new official memorial statue to Diana, Princess of Wales at Kensington Palace, we feel that the time is right to return this memorial to Mr. Al Fayed and for the public to be invited to pay their respects at the palace.” More on the news, with reporting by @loreleimarfil, at WWD.com. #wwdnews