Jay-Z to Sell Rocawear for $204 Million!!!
Rapper/Mogul, Jay-Z has entered into a deal to sell Rocawear for $204 million in cash to the Iconix Brand Group. Iconix is a company that markets brands like Candies, Joe Boxer, Mudd, Londen Fog, Ocean Pacific, etc.
The deal can possibly net Jay-Z $35 million in Iconix stock, if Rocawear meets certain performance requirements over the next few years, according to reports.
Iconix is a pioneering 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 in a statement. Im also looking forward to working with Neil Cole and the Iconix organization on other brand development opportunities.
"This is the largest acquisition Iconix has made and Rocawear is a brand that is increasing in market share and has extraordinary potential for growth", said Neil Cole, CEO of Iconix Brand Group. "The leadership team is already in place to fulfill our mission and we will maintain complete continuity within the business by having Jay and his team in charge of all product development, licensing and marketing. Jay and his partners in the operating company that manufactures all of the Rocawear men's apparel, Alex Bize and Norton Cher, will become our licensee for the core business. Iconix will add talent and resources that I believe will help make Rocawear a billion dollar global brand. This acquisition will be transformative for Iconix in terms of its scale, the diversification it brings to our portfolio of brands as well as having someone as talented as Jay-Z joining our company and the many synergies that could bring."
Jay-Z will continue to be in charge of product development, marketing and licensing for Rocawear, which generally has over $700 million in annual retail sales. Iconix has predicted that Rocawear will do well as far as royalty revenue within the first 12 months of the agreement, which is expected to close this month.