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Iconix Acquires 51 Percent Interest in Buffalo David Bitton
Iconix Brand Group, Inc. has acquired a 51 percent interest in the Buffalo David Bitton brand from Buffalo International ULC, owned by David Bitton 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 standalone retail stores, mainly in Canada, operated by the core licensee.
Neil Cole, CEO, Iconix Brand Group, Inc., said, "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 Canada, as well as internationally."
Gabriel Bitton, CEO, Buffalo International ULC, added, "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 Neil Cole 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 percent interest in Buffalo, Iconix paid $76.5 million in cash. On an annualized basis, the Company expects the Buffalo brand to generate approximately $25 million in royalty revenue with an EBITDA margin of approximately 75 percent to 80 percent for the new joint venture.
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