Iconix Brand To Divest Sharper Image Brand For $100 Mln In Cash

(RTTNews) - Iconix Brand Group, Inc. (ICON) Friday announced that it has signed an agreement to sell the rights to the Sharper Image brand and related intellectual property assets to ThreeSixty Group, the brand's largest licensee, for $100 million in cash.

The Company expects to record a gain on this transaction and for 2017, the net impact of the sale of the Sharper Image brand and the repayment of debt to be neutral to earnings. This transaction is expected to close on December 30, 2016.

Iconix Brand plans to use the net proceeds from this transaction plus additional cash to pay down approximately $115 million of debt, a portion of which will be used to pay down the Company's Senior Secured Notes.

John Haugh, chief executive officer of Iconix, commented, "This transaction generates a significant return on investment, and allows us to make progress on de-levering the balance sheet, which is a top priority. Portfolio management will continue to be a key focus for the Company; Sharper Image is the second brand that Iconix has sold this year."