Iconix, a U.S. company that has become a licensing specialist, will pay $54 million in cash and notes for the historic Ocean Pacific brand, and it will grant Warnaco a license for the women’s and junior swimwear categories. Warnaco is the U.S. licensee of Speedo and has many other swimwear operations.
Warnaco is also discontinuing Lejaby and various other businesses which, along with OP, produced a combined operating loss of $17.0 million on revenues of $19.4 million. During the 3rd quarter, the company’s swimwear group raised its revenues by 24 percent to $44.7 million, but it posted an operating loss of $13,950,000, slightly up from $13,670,000 in the year-ago period.
OP has some 30 license agreements, half of which are for territories outside the U.S. market. Warnaco had suggested earlier that it planned to take back many of the main licenses as they expired. Warnaco recently made several sportswear acquisitions that will increase its global footprint in the designer business.
Iconix formerly managed the Candie’s brand of footwear. In the last few years it has acquired many other brands including Joe Boxer and London Fog, which it licenses along with Candie’s to major retailers and third-party licensees. It has just completed the acquisition of Mossimo.