Iconix buys Waverly
Furniture Today Staff -- Furniture Today, September 29, 2008
New York – Iconix Brand Group – owner of Cannon, Royal Velvet, Fieldcrest and Charisma – will acquire the Waverly brand from NexCen Brands for $26 million.
NexCen will use proceeds from the sale to pay off Waverly’s outstanding debt of $21.3 million, according to a statement released this morning by the company. The remaining proceeds, net of transaction expenses, will be used to pay down debt associated with NexCen's Bill Blass business, which is also on the block.
The sale is expected to close within the next 30 days.
NexCen, which plans to focus on its franchising businesses, acquired the Waverly brand from fabric house F. Schumacher & Co. in spring 2007 for approximately $36 million.
Iconix chairman and ceo Neil Cole, in a statement released this morning, said the Waverly acquision reinforces the company’s commitment to the home business. “It also allows us to establish new partnerships for Iconix with a diverse group of retailers from Lowe’s to J.C. Penney to Jo-Ann Fabrics within the home category. In addition, we believe our ability to finance this acquisition with our existing cash in the current economic environment demonstrates the strength of the Iconix business model.”
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