Iconix Brand Group Inc (NASDAQ:ICON) is selling its interest in the Peanuts brand as part of a $345 million deal.
The deal will have Iconix Brand Group Inc selling its 80% interest in the Peanuts brand to DHX Media Ltd. Following the completion of the sale, ICON will start listing its entertainment segment as a discontinued operation.
Iconix Brand Group Inc is selling Peanuts as part of an effort to pay down its debts. It will use this money, plus some on hand, to pay off a $362 million debt. It says that earnings lost from the sale will be offset by savings on not having to pay interest on its debt.
Iconix Brand Group Inc isn’t just selling its stake in the Peanuts brand. The company is also including the Strawberry Shortcake brand in the sale. The company acquired its investment in the Peanuts brand in 2010 and in Strawberry Shortcake in 2015. The total cost of this was $210 million.
Iconix Brand Group Inc says that getting rid of the entertainment brands are part of its efforts to shift focus to different markets. The company says that it will start putting more of a focus on its fashion, active and home divisions.
Iconix Brand Group Inc is expecting the sale of the Peanuts and Strawberry Shortcake brands to be completed during the second quarter of 2017. Guggenheim Securities is acting as its financial advisor and White & Case LLP is its legal advisor for the deal.
ICON stock was up 2% as of noon Wednesday, but is down 22% year-to-date.
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