Iconix Group Sheds Two Brands

Iconix Brand Group, Inc. has entered into a definitive agreement to sell its interest in the Peanuts and Strawberry Shortcake brands to DHX Media Ltd. for $345 million in cash, subject to a customary working capital adjustment.

"One of our strategic objectives has been to de-lever and strengthen our balance sheet. This sale aligns with this objective," Iconix chief executive officer John Haugh said in a statement. "We are now focused on a second strategic objective of driving profitable revenue growth by focusing our resources on the businesses where we have a leadership position: fashion, active and home."

The company's numerous brands in those categories include Candie's, Danskin, Joe Boxer, Mudd, RocaWear, Mossimo and Pony.

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

"Peanuts and Strawberry Shortcake are iconic entertainment properties, and we are proud of the contributions Iconix has made to these brands," Haugh said. "Specifically with Peanuts, in partnership with the Schulz family, we have produced the first-ever feature film, delivered countless worldwide collaborations and significantly grown the [brand's] worldwide presence." 

The company intends to use the transaction's net proceeds plus additional cash on the balance sheet to pay down approximately $362 million of debt. The deal is expected to close by the end of the second quarter.

The two children's entertainment properties should feel at home at DHX Media, which bills itself as "the world’s leading independent, pure-play children’s content company." Brands include Teletubbies, Yo Gabba Gabba!, Caillou, In the Night Garden, Inspector Gadget, and Degrassi.