Iconix Brand To Sell Peanuts And Strawberry Shortcake Brands To DHX Media

(RTTNews) - Iconix Brand Group, Inc. (ICON) said it has entered into a definitive agreement to sell its interest in the Peanuts and Strawberry Shortcake brands to DHX Media Ltd. (DHX.L, DHX.TO) for $345 million in cash, subject to a customary working capital adjustment. The transaction is expected to close by the end of the second quarter of 2017.

Iconix Brand intends to use the net proceeds from this transaction plus additional cash on the balance sheet to pay down about $362 million of debt. This includes a mandatory payment of approximately $152 million of the company's senior secured notes issued under the company's securitization facility, and the full extinguishment of the $210 million outstanding balance of the company's senior secured term loan.

Going forward, the entertainment segment will be reported as a discontinued operation. The company expects the elimination of earnings from the entertainment segment to be offset by interest savings from the reduction of debt.

Iconix acquired an 80 percent interest in the Peanuts brand in June of 2010 and added Strawberry Shortcake to the portfolio in March of 2015. The total acquisition cost of these brands was $246 million.