Rapper Jay-Z Sells Clothing Company Rocawear For $204 Million In Cash

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 today, (Mar. 6) could also net Jay-Z $35 million in

Iconix stock, if the Rocawear brand meets certain performance requirements over

the next three-five years."Iconix

is pioneering a new brand management model and by combining Rocawear with their

platform, my team and I can focus on our strengths in design and lifestyle

marketing." Jay-Z said. "I'm also looking forward to working with Neil

Cole and the Iconix organization on other brand development opportunities."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 run the manufacturing company. "This

is the largest acquisition Iconix has made and Rocawear is a brand that is increasing

in market share and has extraordinary potential for growth," said Neil Cole,

Chairman and CEO of Iconix Brand Group commented. "The leadership team is

already in place to fulfill our mission and we will maintain complete continuity

within the business by having Jay and his team in charge of all product development,

licensing and marketing. Jay and his partners in the operating company that manufactures

all of the Rocawear men's apparel, Alex Bize and Norton Cher, will become our

licensee for the core business. Iconix will add talent and resources that I believe

willhelp make Rocawear a billion dollar global brand. This acquisition will

be transformative for Iconix in terms of its scale, the diversification it brings

to our portfolio of brands as well as having someone as talented as Jay-Z joining

our company and the many synergies that could bring."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.