April 28, 2010 (FinancialWire) — Iconix Brand Group, Inc. (NASDAQ: ICON) said that it has signed a definitive agreement with United Features Syndicate, Inc. and The E.W. Scripps Co. (NYSE: SSP) to acquire the Peanuts brand and related assets in partnership with the Schulz family.

As part of the transaction, Iconix will also acquire the licensing and character representation business of United Media Licensing, a division of UFS, which, in addition to Peanuts, represents a number of character brands, including Dilbert and Fancy Nancy.

According to Iconix, the Peanuts brand and other acquired assets will be purchased through a newly formed subsidiary, which will be owned 80% by Iconix and 20% by the Schulz family.

The total purchase price for the acquisition is around $175 million, of which Iconix will pay for its 80% share and the Schulz family will pay for its 20% share.

Iconix portion will be funded from the company's existing cash balance, according to the firm.  

The Peanuts brand is licensed in over 40 countries and generates annual retail sales of over $2 billion.  

Neil Cole, chairman and CEO of Iconix, called the acquisition a “transformational deal” for his firm. He said that, “owning the Peanuts business moves Iconix well beyond fashion into a true global brand management entity with a wide variety of agreements that range from theme parks to media to financial institutions.”

Cole added that the deal extends Iconix international platform, with Peanuts licensed in over 40 countries and approximately two-thirds of its revenue coming from outside of the U.S.

On a pro-forma basis Iconix expects Peanuts to generate around $75 million in annual royalty revenue and add around $0.12-$0.15 in annual EPS.

New York-based Iconix owns, licenses and markets a portfolio of consumer brands including Candie’s, Joe Boxer, London Fog and others. The company licenses its brands to a network of retailers and manufacturers.

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