Rapper/mogul Shawn “Jay-Z” Carter has entered into a deal to sell clothing company Rocawear for $204 million in cash to the Iconix Brand Group, a company that licenses and markets such popular brands as Candies, Joe Boxer, Mudd, London Fog, Ocean Pacific and others.
The deal, which was announced on March 6th, could also net Jay-Z $35 million in Iconix stock, if the Rocawear brand meets certain performance requirements over the next three-five years.
Jay-Z will continue to be in charge of all product development, marketing and licensing for Rocawear, which boasts annual retail sales of over $700 million.
The rapper will retain his stake in the operating company the manufactures all of the Rocawear men’s apparel line, and the mogul’s two partners, Alex Bize and Norton Cher, will continue to ran the manufacturing company.
Iconix is forecasting that Rocawear, which was founded in 1995, will generate almost $43 million in royalty revenue during the first 12 months of the agreement.
Iconix and Jay-Z have also reached a deal to form a new brand management/licensing company that will debut a new luxury brand titled The Shawn Carter Collection, which is due in stores in 2008.
The deal is expected to close this month.