Iconix Acquires Waverly
October 13, 2008-- Home Textiles Today,
Iconix Brand Group — owner of Cannon, Royal Velvet, Fieldcrest and Charisma — has acquired the Waverly brand from NexCen Brands for $26 million in cash.
NexCen will use proceeds from the sale to pay off Waverly's outstanding debt of $21.3 million, according to a statement released by the company. The remaining proceeds, net of transaction expenses, will be used to pay down debt associated with NexCen's Bill Blass business, which is also on the block.
The sale closed on Oct. 6.
NexCen, which plans to focus on its franchising businesses, acquired the Waverly brand from fabric house F. Schumacher & Co. in spring 2007 for approximately $36 million.
Iconix chairman and ceo Neil Cole said the Waverly acquisition reinforces the company's commitment to the home business. "It also allows us to establish new partnerships for Iconix with a diverse group of retailers from Lowe's to JCPenney to Jo-Ann Fabrics within the home category. In addition, we believe our ability to finance this acquisition with our existing cash in the current economic environment demonstrates the strength of the Iconix business model."
Founded in 1923, the Waverly brand comes to Iconix with two direct-to-retail agreements, Waverly Home at Target and Waverly Home Classics at Lowe's.