Iconix to buy Pillowtex, enters home market

NEW YORK Iconix Brand Group announced that it has agreed to purchase Official Pillowtex, LLC, for $231 million in cash. Official Pillowtex is a licensing company that owns a large portfolio of home brands including, Cannon, Royal Velvet, Fieldcrest and Charisma.

According to Neil Cole, chairman and ceo of Iconix Brand Group, "This is a transformative acquisition for Iconix as our brand portfolio now transcends the fashion industry with the addition of four iconic home brands. These brands have a combined three hundred years of history and a level of awareness and authenticity that few brands in any category can match. We believe that the home industry is an ideal fit for our first acquisition outside of fashion as there is a lack of innovative marketing and differentiation among brands. I believe that our marketing expertise will enable us to maximize the potential of these iconic brands and realize numerous growth opportunities including extending their reach into new categories in the home as well as into new markets around the world and developing some of the additional smaller brands within the Pillowtex portfolio."

The acquisition is anticipated to close later this year and is subject to customary closing conditions including clearance under the Hart-Scott-Rodino Anti Trust Improvements Act of 1976, as amended.