Morristown-based law firm Riker Danzig Scherer Hyland & Perretti LLP announced that its client Marc Ecko Enterprises signed a contract on October 27, 2009 to sell a 51% stake in its brands to apparel maker Iconix Brand Group Inc. Iconix will pay approximately $109 million, and will form a joint venture with a Marc Ecko affiliate.
Mark Ecko is best known for its brands Ecko Unlimited, Cut & Sew, Zoo York, Complex Magazine, Ecko Red, Avirex, and many other licenses.
Iconix will pay $63.5 million in cash, with the joint venture obtaining an additional $90 million in financing. This will cover the current debt of Marc Ecko, comprised of a $70 million term loan from a syndicate led by CIT Group Inc. and approximately $100 million owed to Li and Fung Ltd., a global trading company involved in the manufacturing of Ecko’s inventory.
Andrew J. Stamelman, chair of Riker Danzig’s Corporate Practice, and partner William G. Connolly headed the team for the transaction, which is expected to close within a week. Additional support is being provided by partners Harold S. Atlas and Charles S. Detrizio, Counsel Geoffrey Gussis, Richard Martinson and Anthony Fernandez, and associate Ami Foger.
Law firms Blank Rome LLP, Paul, Weiss, Rifkind, Wharton & Garrison LLP, and Dorsey & Whitney are also providing legal counsel on the deal.
