Rocawear to be Sold to Iconix Brand Group for $204 Million
Rocawear, the urban clothing brand co-founded by Jay-Z, will be purchased for $204 million in cash by the Iconix Brand Group. The agreement, announced today (March 6), is subject to approval under anti-trust statutes, but is expected to be finalized this month. In addition to the purchase price, an additional $35 million will be paid out if the company meets or exceeds certain performance thresholds over the next three to five years. Under the agreement, Jay-Z will remain in his role as chief creative officer and will continue to oversee all product development, marketing and licensing for the brand.
The Rocawear senior management team will join Iconix, and Jay’s partners Alex Bize and Norton Cher, will continue to run the operating company that is responsible for the manufacture of Rocawear apparel. “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.”
As part of the overall deal, Iconix will also enter into a separate agreement with Jay-Z to establish a new brand management and licensing company that will seek to acquire or develop new or existing brands across a broad range of categories. “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 remarked. “I'm also looking forward to working with Neil Cole and the Iconix organization on other brand development opportunities.” Rocawear is a leader in the lifestyle apparel category and has recorded annual retail sales of $700 million.