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Restaurant Industry News
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Friday November 21st, 2008 |
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NexCen Brands Executes Agreement to Sell Waverly
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NexCen Brands, Inc. (NASDAQ: NEXC) today announced that it has entered into an asset purchase agreement to sell its Waverly business to Iconix Brand Group, Inc. (NASDAQ: ICON), a diversified fashion and home brands company. |
Under the terms of the agreement, NexCen will receive $26.0 million in cash and Iconix will assume certain future liabilities associated with the Waverly business. NexCen will use the proceeds from the sale to pay off all of the outstanding Waverly debt of $21.3 million. Following the repayment of this Waverly debt, the remaining sales proceeds, net of transaction expenses, will be used to pay down debt associated with NexCen's Bill Blass business.
The asset sale, which is subject to customary closing conditions, is expected to close within the next 30 days. NM Rothschild & Sons Limited acted as the financial advisor to NexCen.
Kenneth J. Hall, Chief Executive Officer of NexCen Brands, stated, 'We are pleased to have executed an agreement for the sale of our Waverly business with an all cash transaction which exceeds the underlying debt associated with that business. We continue to make progress in executing our revised strategic plan to focus on our franchising businesses. We believe the restructuring of our credit facility, now followed by the sale of Waverly, are important steps in the Company's efforts to de-lever our balance sheet, enhance our liquidity and ultimately to maximize value for our shareholders.'
NexCen manages global brands, generating revenue through franchising and licensing. The Company currently owns seven franchised brands. Two sell retail footwear and accessories (The Athlete's Foot and Shoebox New York), and five are quick service restaurants (Marble Slab Creamery, MaggieMoo's, Pretzel Time, Pretzelmaker, and Great American Cookies). We also currently own and license the Bill Blass consumer products brand.
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