It was announced Tuesday (March 6) that Jay-Z is unloading his Rocawear clothing label for $204 million in cash to the Iconix Brand Group, a company that licenses and markets such brands as Candies, Joe Boxer, Mudd, London Fog and Ocean Pacific.
According to reports, the deal could also net Jigga $35 million in Iconix stock, if the 12-year-old Rocawear brand meets certain performance requirements over the next three to five years.
Under the agreement, Jay-Z will continue to oversee all product development, marketing and licensing for Rocawear, which reportedly earns over $700 million in annual retail sales. He’ll also retain his stake in the operating company that manufactures the Rocawear men's apparel line.
"Iconix is pioneering a 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. "I'm also looking forward to working with [CEO] Neil Cole and the Iconix organization on other brand development opportunities."
Iconix believes its venture with Rocawear will generate almost $43 million in royalty revenue during the first 12 months of the agreement.
Meanwhile, Iconix and Jay-Z have also reached a deal to form a new brand management/licensing company that will debut a new luxury brand titled The Shawn Carter Collection, which is due in stores in 2008.
source:eurweb
Mar 8, 2007
JAY-Z SELLS ROCAWEAR FOR $204 MILLION
It was announced Tuesday (March 6) that Jay-Z is unloading his Rocawear clothing label for $204 million in cash to the Iconix Brand Group, a company that licenses and markets such brands as Candies, Joe Boxer, Mudd, London Fog and Ocean Pacific.
According to reports, the deal could also net Jigga $35 million in Iconix stock, if the 12-year-old Rocawear brand meets certain performance requirements over the next three to five years.
Under the agreement, Jay-Z will continue to oversee all product development, marketing and licensing for Rocawear, which reportedly earns over $700 million in annual retail sales. He’ll also retain his stake in the operating company that manufactures the Rocawear men's apparel line.
"Iconix is pioneering a 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. "I'm also looking forward to working with [CEO] Neil Cole and the Iconix organization on other brand development opportunities."
Iconix believes its venture with Rocawear will generate almost $43 million in royalty revenue during the first 12 months of the agreement.
Meanwhile, Iconix and Jay-Z have also reached a deal to form a new brand management/licensing company that will debut a new luxury brand titled The Shawn Carter Collection, which is due in stores in 2008.
source:eurweb
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