Fitness EM to continue license of equipment after Danskin sale to Iconix

Fitness EM, a specialist in accessories and women's fitness equipment and gear, will continue its six-year license to market fitness products under the Danskin Fitness name after the sale of the Danskin brand to Iconix Brand Group.
Author:
Updated:
Original:

Fitness EM, a specialist in accessories and women's fitness equipment and gear, will continue its six-year license to market fitness products under the Danskin Fitness name after the sale of the Danskin brand to Iconix Brand Group.

That transaction selling the 125-year-old brand of women's active wear to Iconix (Nasdaq: ICON) will close in March 2007.

"The Danskin agreement is very positive for Fitness EM," CEO Michael Savage told SNEWS®. "Their deal with Iconix will provide Danskin the necessary capital to help them grow their wholesale business and increase investment in marketing this great brand.

"As the exclusive licensee for brand Danskin in the fitness product category, Fitness EM will certainly benefit from the increased exposure. We have had a very positive six-year relationship with Danskin, and their management team and our license agreement will remain intact."

The purchase price for the transaction will be $70 million with a contingent payment of an additional $15 million, payable in cash or stock, triggered by the brand exceeding certain revenue and performance targets. The acquisition will be self-funded from the company's cash reserves.

Fitness EM (www.fitnessem.com) has a large line of about 35 to 40 Danskin Fitness-branded portable equipment products, including items for core training, Pilates, yoga, dumbbell workouts and other strength-training, balance and toning products. That is in addition to the company's "empower" line of women's strength equipment, including benches and gyms that have won awards for their simplicity and style that speaks to women's needs.

Savage said Danskin's deal with Iconix should allow Fitness EM, which began business in 1997, to grow its work with the company, allowing not only for more products, but also for more channels, including more internationally.

"Distribution for our Danskin-branded fitness products has grown substantially in multiple channels during our relationship with Danskin," Savage added. "Recently, we have expanded well beyond traditional sporting goods and specialty fitness dealers into sales channels that have had great success with Danskin-branded apparel and are primarily focused on reaching the female consumer, including department stores such as Nordstrom, housewares stores such as Bed Bath & Beyond and TV shopping, to name just a few."

As a part of the agreement, Iconix also announced it will enter into a license agreement with the seller to continue to operate the Danskin wholesale business including free-standing retail stores. The Danskin team will continue as Iconix's licensee to grow the Danskin department and sporting goods store business, a statement said.

"We have made a lot of progress expanding this great brand and implementing our multi-channel distribution strategy, but the missing ingredient has been the marketing strategy and investment needed to complete our vision," said Carol Hochman, CEO of Danskin, in a statement. "The Iconix team has exciting plans for Danskin, and I am looking forward to working closely with them to grow the business."

Iconix Brand Group (www.iconixbrand.com) owns licenses and markets a portfolio of consumer brands including Candie's, Bongo, Joe Boxer, Rampage, Mudd, London Fog, Mossimo and Ocean Pacific.

"Our vision for the women's fitness product category aligns perfectly with Danskin's vision in that women appreciate when products are designed exclusively for them," Savage said. "Considering that more than 95 percent of women are not hard-core fitness enthusiasts, we strive to develop products for them and distribute merchandise where women shop, not just where fitness people shop.

"We would love to see more of our customers recognize this critical buying demographic by marketing more aggressively and directly to women," he added.

Related

Life Fitness signs equipment licensing deal with Bally

In its first equipment licensing agreement, Life Fitness will manufacture home equipment for the club chain, Bally Total Fitness. Debuting this quarter, the equipment will be branded "Bally Total Fitness" without any indication of a tie to Life Fitness, SNEWS was told. Four ...read more

Lamar inks champ of equipment license with Champion Athleticwear

Leaping into the battle of branding with a recognized name, Lamar Health, Fitness & Sports will manufacture and market cardiovascular equipment for Champion Athleticwear, bearing the Champion label, under a newly sealed license agreement. "We were ecstatic about the Champion ...read more

Fitness financials: Cybex's Q3 sales drop, plus Iconix

Cybex's Q3 sales drop Cybex (Nasdaq: CYBI) reported declines in both sales and profits for the third quarter, hurt by a sluggish health club market. For the quarter ended Sept. 26, net sales were $29.0 million compared to $35.8 million for the corresponding 2008 period. Net ...read more

Fitness financials: Iconix Brand Group forms Iconix China

Iconix Brand Group forms Iconix China Iconix Brand Group (Nasdaq: ICON) today announced that the company and Novel Fashion Brands Limited, owned and run by Silas Chou and family, had completed the formation of Iconix China Ltd., a Hong Kong company formed by the parties to ...read more

Fitness financials: Nautilus letter urges shareholders to vote against Sherborne proxy, plus Gaiam, adidas, Sport Chalet, Puma, Under Armour, Health Fitness, Iconix, Costco, Wal-Mart

Nautilus letter urges shareholders to vote against Sherborne proxy Nautilus (NYSE: NLS) urged its shareholders to vote against a proposal from Sherborne Investors LP and its affiliates to replace a majority of board members with Sherborne nominees. In a letter mailed to ...read more

Everlast jumps into U.S. fitness equipment ring, licensing never-ending

With a flurry not unlike the punches thrown by the contestants on NBC's "The Contender," Everlast Worldwide Inc. has made several licensing moves in the fitness segment over the last month from fitness equipment to videos, both here and abroad. Leading the way was a licensing ...read more

Fitness financials: Iconix prices common stock offering, plus Costco, Wal-Mart

Iconix prices common stock offering Iconix Brand Group (Nasdaq: ICON), parent of Danskin Fitness, has priced its upcoming common stock offering at $15 per share. With the company offering 9.2 million shares and select stockholders selling 800,000 shares, it expects to generate ...read more

Fitness financials: Precor and parent Amer sales hit by weak U.S. dollar, plus Gaiam, Iconix, adidas

Precor and parent Amer sales hit by weak U.S. dollar The weakening U.S. dollar slammed Amer Sports group's net sales for the second quarter and six-month period and knocked its Precor fitness segment with double-digit percentage point sales declines for the same periods. Amer ...read more

Fitness financials: Nike’s Knight puts 2M shares in trust, plus Iconix

Nike’s Knight puts 2M shares in trust Phil Knight, Nike’s chairman and controlling shareholder, has directed 2 million shares of Nike’s (NYSE: NKE) Class A stock into a new annuity trust, according to an SEC filing. Knight contributed the Class A shares to former University of ...read more