Feb. 4, 2013
/PRNewswire/ -- Iconix Brand Group, Inc. (NASDAQ: ICON) ("Iconix" the "Company") today announced that it has acquired a 51% interest in the Buffalo David Bitton® ("Buffalo") brand from Buffalo International ULC, owned by
and his brothers. To acquire the trademark, Iconix formed a new joint venture company with Buffalo International ULC. Iconix will control this joint venture and consolidate its results. Buffalo International ULC will be the core licensee for the new joint venture.
Founded in 1985, Buffalo is a lifestyle brand consisting of denim, sportswear, activewear, and accessories. Buffalo is primarily sold through better department stores including Macy's, Dillard's and Lord & Taylor, and has 30 stand-alone retail stores, mainly in
, operated by the core licensee.
, CEO, Iconix Brand Group, Inc., commented, "The Bitton brothers have built a powerful lifestyle brand. We look forward to leveraging our licensing and brand management expertise to further grow the business and expand its retail footprint in the U.S. and
, as well as internationally."
, CEO, Buffalo International ULC, commented, "Iconix is recognized as the leader in brand management and has a strong track record of building worldwide brands. We are excited to be working with
and the rest of the Iconix team to grow Buffalo to the next level through Iconix's strong and proven global platform."
For its 51% interest in Buffalo, Iconix paid
in cash. On an annualized basis, the Company expects the Buffalo brand to generate approximately
in royalty revenue with an EBITDA margin of approximately 75-80% for the new joint venture.