Wednesday, March 7, 2007

JAY Z (sean carter) SELLS ROCA-WEAR



reprinted from the ny times-

A few months after returning from rap-star retirement with a chart-topping album, Jay-Z has scored big on his other line of business: clothing. Jay-Z is selling the rights to the brand Rocawear, the urban-style apparel line he cofounded, for $204 million in cash to the Iconix Brand Group, Iconix said Tuesday. Under the licensing deal, Jay-Z, whose real name is Shawn Carter, will keep his stake in the Rocawear operating company, which manufactures Rocawear’s clothing for men. He will also be in charge of product development, marketing and licensing for Rocawear.

Iconix is an unusual kind of apparel company, acting as a pure-play licensing business that acquires the rights to various clothing brands. It has been in heavy acquisition mode, recently buying the Ocean Pacific and Danskin brands. It also owns the rights to Joe Boxer, a line of underwear, and London Fog, known for its outerwear.

Rocawear, whose offerings include jeans and hooded sweat shirts, is Iconix’s largest acquisition ever. In addition to the $204 million cash component, Iconix has agreed to pay as much as $35 million in stock if the Rocawear brand meets certain targets in the next five years.

“Iconix will add talent and resources that I believe will help make Rocawear a billion-dollar global brand,” Iconix’s chief executive, Neil Cole, said in a news release. Rocawear currently does more than $700 million in annual retail sales, Iconix said.

The deal was previously reported in Women’s Wear Daily, which prompted Todd Slater, a retail analyst at Lazard Capital Markets, to write in a research note that the deal looked like a “very compelling acquisition, from both a strategic and financial view.”

5 comments:

rocawear said...

Jay z not only a rapper he also a good businessman to his a new Rocawear’s clothing for men. i wish his success in his company.. keep it up!

-sidney-

rocawear said...

Your insight about the topic is refreshing. such an interesting post about Jay'z. Nice entry.

-sidney-

rocawear said...

Oh! this post looks very interesting. by the way it's me dropping some comments again. I really like rocawear as one of the best brand in terms of clothing line. looking forward for your next post!

-sidney-

rocawear said...

When we talked about hip hop clothing rocawear is one of the best brand ever. hope to read more about our post!

-sidney-

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