Iconix Brand Group, Inc., the owner of brands including Umbro and Lee Cooper, announced on Friday that it has entered into a definitive agreement to be acquired by Iconix Acquisition Corp., an affiliate of Lancer Capital.
The all-cash deal, which values Iconix at around $585 million, including net debt, will result in the company, which also operates a large license portfolio, going private.
Under the terms of the transaction, Lancer will commence a tender to acquire all outstanding shares of Iconix’s common stock for $3.15 per share, in cash. This offer price per share represents a premium of 28.6% over the company’s closing share price on June 10,2021, and a premium of around 46.5% over its average volume weighted share price for the 30-day period ended June 10, 2021.
Shares not tendered in the offer will be acquired in a second-step merger at the same cash price as that paid in the offer. Iconix’s board of directors has unanimously approved the deal.
“Today’s announcement represents the culmination of a year-long examination by our board of directors of strategic alternatives for the company,” said Iconix CEO Bob Galvin in a release. “After a thorough and deliberative examination of all potential strategic alternatives, the board of directors determined that the transaction with Lancer provides the best value for our stockholders. We expect that Iconix will continue developing its brands and supporting its partners as a private company.”