Iconix acquires Buffalo David Bitton brand

Fashion

Consumer brand group Iconix has taken a controlling interest in the Buffalo David Bitton brand from Buffalo International for a deal worth 76.5 million dollars. Under the deal, Iconix will hold a 51 percent stake in the lifestyle brand and has

formed a joint venture with Buffalo International, which will become the core licensee, reports WGSN.

Buffalo sells denim, sportswear, activewear and accessories through department stores including Macy's and Dillard's and Lord & Taylor, and has 30 stand-alone retail stores, mainly in Canada. On an annualised basis, Iconix expects the Buffalo brand to generate around 25 million dollars in royalty revenue with an ebitda margin of around 75-80 percent for the new JV.

Iconix CEO Neil Cole said: "The Bitton brothers have built a powerful lifestyle brand. We look forward to leveraging our licensing and brand management expertise to further grow the business and expand its retail footprint in the US and Canada, as well as internationally."

Gabriel Bitton, CEO, Buffalo International ULC, commented, "Iconix is recognized as the leader in brand management and has a strong track record of building worldwide brands. We are excited to be working with Neil Cole and the rest of the Iconix team to grow Buffalo to the next level through Iconix's strong and proven global platform."

Iconix Brand Group owns a diversified portfolio of fashion and home brands, including Umbro, Madonna's Material Girl and Badgley Mischka. The company covers most of the retail distribution spectrum, but mostly caters to the mass market. Iconix licenses its brands to leading retailers and manufacturers worldwide.

Image: Buffalo David Bitton