Iconix Brand Group, Inc. Announces Acquisition of Worldwide Rights to the Ed Hardy Brand, Paid $55mm, $7m Earnout (ICON)

Iconix Brand Group, Inc. ICON , today announced it has acquired the worldwide master license for the Ed Hardy® brand from Nervous Tattoo. Through this transaction, the Company will gain control of the licensing and marketing functions, and increase its total ownership stake in the Ed Hardy brand to 85%. Previously, the Company had a small investment in the brand through its joint venture with Don Ed Hardy. Iconix paid $55 million plus a $7 million earn-out for this acquisition. As part of the transaction, Nervous Tattoo, who will continue as a licensee for Ed Hardy t-shirts, hats and hoodies, will pre-pay $7 million in royalties under its license. With its increased stake, the Company will now fully consolidate the Hardy Way financials and Don Ed Hardy's 15% will be reflected in minority interest. Going forward, Ed Hardy will no longer be included in the Company's equity earnings on joint ventures line in its income statement.  Further, any non-cash gains relating to this transaction are not included in the Ed Hardy estimates.