Iconix Brand sells Peanuts and Strawberry Shortcake brands

Iconix Brand Group has entered into a definitive agreement to sell its interest in the Peanuts and Strawberry Shortcake brands to DHX Media for 345 million dollars in cash, subject to a customary working capital adjustment.

Commenting on the announcement, John Haugh, Chief Executive Officer of Iconix, said, "One of our strategic objectives has been to de-lever and strengthen our balance sheet. This sale aligns with this objective. As we monetize the value we have created in our entertainment business, we can reduce our debt and pay down a term loan that is expensive and highly restrictive."

The company intends to use the net proceeds from this transaction plus additional cash on the balance sheet to pay down approximately 362 million dollars of debt. This includes a mandatory payment of approximately 152 million dollars of the company's senior secured notes issued under the company's securitization facility, and the full extinguishment of the 210 million dollars outstanding balance of the company's senior secured term loan.

Going forward, the company said, the entertainment segment will be reported as a discontinued operation. Iconix acquired an 80 percent interest in the Peanuts brand in June of 2010 and added Strawberry Shortcake to the portfolio in March of 2015. The total acquisition cost of these brands was 246 million dollars.

Picture:Facebook/Strawberry Shortcake