One of the things that helped in making Jay-Z the richest rapper and hip-hop artist in recent years is the fashion label Rocawear which he co-founded and sold for US$204 million in cash back in 2007.

Taking a deeper look at the details of the deal between Shawn Carter aka Jay-Z and the Iconix Brand Group, it appears that:

• Jay-Z will continue as the Chief Creative Officer
• Jay-Z may receive contingent payments of an additional US$35 million of Iconix stock over the next 3-5 years
• Iconix will also enter into a separate equal joint venture with Shawn Carter to establish a new brand management and licensing company that will identify brands to be acquired and/or developed across a broad spectrum of consumer product categories using the Iconix model.
• The first brand will involve Jay-Z and will be an eponymous luxury brand called “Shawn Carter Collection” which will debut in 2008.

Seems like a smart move from the king of hiphopreneurs.

Here are details from the press release:

NEW YORK, March 6 /PRNewswire-FirstCall/ — Iconix Brand Group, Inc.

( ICON) (“Iconix” or the “Company”), today announced that it has

entered into a definitive agreement to purchase the brand Rocawear. The

purchase price will be $204 million in cash with contingent payments of an

additional $35 million of Iconix stock based upon the brand surpassing

certain pre-determined performance thresholds over the next three to five

years. Rocawear is a leading lifestyle apparel brand sold through better

department and specialty stores with annual retail sales of over $700

million. Rocawear co-founder Jay-Z will be in charge of all product

development, marketing and licensing for Rocawear. Jay-Z’s senior

management team in licensing, marketing and product development will also

join Iconix. He will retain his stake in the operating company that

manufactures all of the Rocawear men’s apparel and his two partners in that

business, Alex Bize and Norton Cher, will continue to run that company and

enter into a long-term license agreement with Iconix for the core young

men’s apparel category. Iconix is forecasting that the Rocawear brand will

generate approximately $43 million in royalty revenue in its first twelve

months under the Iconix umbrella.

As part of the transaction, Iconix will also enter into a separate

equal joint venture with Shawn Carter to establish a new brand management

and licensing company that will identify brands to be acquired and/or

developed across a broad spectrum of consumer product categories using the

Iconix model. The first brand will involve Jay-Z and will be an eponymous

luxury brand called “Shawn Carter Collection” which will debut in 2008.

Neil Cole, Chairman and CEO of Iconix Brand Group commented, “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. 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.”

Shawn Carter, co-founder of Rocawear, commented, “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.” Carter added, “I’m also looking forward to working with Neil

Cole and the Iconix organization on other brand development opportunities.”

The purchase price for the acquisition will be paid by Iconix in cash

from proceeds of a loan made to the Company by one or more affiliates of

Lehman Brothers Inc. The acquisition is anticipated to close in March 2007

and is subject to customary closing conditions including clearance under

the Hart- Scott-Rodino Anti Trust Improvements Act of 1976, as amended.

Iconix Brand Group Inc. ( ICON – News) owns, licenses and

markets a growing portfolio of consumer brands including CANDIE’S (R),

BONGO (R), BADGLEY MISCHKA (R), JOE BOXER (R) RAMPAGE (R), MUDD (R), LONDON

FOG (R), MOSSIMO (R) and OCEAN PACIFIC (R). The Company has also entered

into definitive agreements to purchase the brands DANSKIN (R) and ROCAWEAR

(R). The Company licenses it brands to a network of leading retailers and

manufacturers that touch every major segment of retail distribution from

the luxury market to the mass market in both the U.S. and around the world.

Iconix, through its in-house advertising, promotion and public relations

agency, markets its brands to continually drive greater consumer awareness

and equity.

Safe Harbor Statement under the Private Securities Litigation Reform

Act of 1995. The statements that are not historical facts contained in this

press release are forward looking statements that involve a number of known

and unknown risks, uncertainties and other factors, all of which are

difficult or impossible to predict and many of which are beyond the control

of the Company, which may cause the actual results, performance or

achievements of the Company to be materially different from any future

results, performance or achievements expressed or implied by such forward

looking statements. Such factors include, but are not limited to,

uncertainty regarding the results of the Company’s acquisition of

additional licenses, continued market acceptance of current products and

the ability to successfully develop and market new products particularly in

light of rapidly changing fashion trends, the impact of supply and

manufacturing constraints or difficulties relating to the Company’s

licensees’ dependence on foreign manufacturers and suppliers, uncertainties

relating to customer plans and commitments, the ability of licensees to

successfully market and sell branded products, competition, uncertainties

relating to economic conditions in the markets in which the Company

operates, the ability to hire and retain key personnel, the ability to

obtain capital if required, the risks of litigation and regulatory

proceedings, the risks of uncertainty of trademark protection, the

uncertainty of marketing and licensing acquired trademarks and other risks

detailed in the Company’s SEC filings. The words “believe,” “anticipate,”

“expect,” “confident,” “project,” provide “guidance” and similar

expressions identify forward-looking statements. Readers are cautioned not

to place undue reliance on these forward looking statements, which speak

only as of the date the statement was made.

Contact:  David Conn

Executive Vice President

Iconix Brand Group

212.730.0030

Joseph Teklits

Integrated Corporate Relations

203.682.8200

SOURCE  Iconix Brand Group, Inc.

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