Iconix Brand Group signs a definitive agreement to acquire the Strawberry Shortcake brand from American Greetings for $105 million in cash.
New York, NY -- Iconix Brand Group, Inc. announced that it has signed a definitive agreement to acquire the Strawberry Shortcake brand and related intangible assets from American Greetings for $105 million in cash.
Neil Cole, Chairman and CEO of Iconix Brand Group, Inc., commented "The entertainment sector is an exciting area of growth for our Company. Through our Peanuts brand, we have a strong worldwide platform that we believe we can leverage as we add new entertainment properties to our portfolio. With the acquisition of Strawberry Shortcake, we will be expanding this platform as we gain new partnerships with top entertainment companies around the world."
The iconic Strawberry Shortcake character made her debut 35 years ago, and quickly gained national appeal with her spunky yet innocent persona. Today, Strawberry Shortcake is a global brand with an impressive and diversified network of over 350 licensees.
Strawberry Shortcake has a strong international business, with revenue outside of the U.S. representing approximately 50% of total sales. The two largest international markets are Brazil and France, where the brand is highly recognized as a local based brand, marketed as Moranguinho in Brazil and Charlotte aux Fraises in France.
Leigh Anne Brodsky, Managing Director, Iconix Entertainment stated, "We are excited to be expanding the Iconix entertainment platform with such an iconic brand that resonates across multiple generations from daughters to mothers to grandmothers. We see many opportunities to grow this brand worldwide, and believe Strawberry Shortcake has a fresh fashion appeal that can play to both classic and modern tastes, with a built in play pattern which makes it great for physical and digital toys and games."
This transaction is expected to close in approximately 30-45 days. Details of this transaction will be discussed on the Company's fourth quarter and full year 2014 earnings conference call. This deal is in line with the Company's historical acquisition metrics.
Source: Iconix Brand Group