Iconix forms Latin America unit
Clint Engel -- Furniture Today, January 7, 2009
New York – Iconix Brand Group has formed Iconix Latin America, a joint venture with New Brands Americas LLC, a unit of diversified luxury brand and duty-free store operator Falic Group.
Iconix said the new venture will direct licensing in Mexico, Central America, South America, and the Caribbean. The terms deliver a 50% interest in the joint venture to New Brands in exchange for $6 million “plus other commitments.” New Brands “will also have an option to purchase rights to future brands acquired by Iconix,” the company noted.
Falic Group owns Duty Free Americas, with more than 150 duty free shops in major airports and border crossings, the company said. Falic also owns the House of Christian Lacroix and various fragrance and cosmetics brands, and holds licenses and international distribution rights for a range of luxury brands.
Neil Cole, chairman and ceo of Iconix, stated, “The Falic brothers [Simon, Jerome and Leon] have extensive expertise and contacts in the Latin American market. Having locally based partners with knowledge of the different cultures and markets that comprise this region will significantly accelerate the growth of our brands throughout this territory and help us maximize revenue from our existing licensing base in Latin America. Different from our joint venture in China, Iconix Latin America will be run as a traditional licensing business with near-term revenue opportunity.”
The Iconix venture in China has a focus on selling brand rights in exchange for equity in Chinese companies.
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