Iconix CEO Cole sees larger M&A deals

By Justin Grant

NEW YORK (Reuters) - Iconix Brand Group Inc. (ICON.O: Quote, Profile, Research, Stock Buzz), owner of such fashion brands as Rocawear and Joe Boxer, aims to expand its portfolio beyond fashion and can match or exceed its recent acquisition pace, Chief Executive Neil Cole said on Tuesday.

"We believe our model works outside of fashion," Cole said at the Reuters Consumer and Retail Summit in New York. "We're looking at bigger deals. We're looking at bigger brands."

In March, Iconix paid $204 million for Rocawear, a fashion line co-created by hip-hop mogul Jay-Z, in its largest deal to date and one Cole said the company aimed to top in the future.

Cole also said he can see Iconix branching into home and sporting goods, and even into the food and beverage business.

"We're looking at deals in different consumer segments," he said. "I would love to do business with Home Depot (HD.N: Quote, Profile, Research, Stock Buzz), Best Buy (BBY.N: Quote, Profile, Research, Stock Buzz), Lowe's (LOW.N: Quote, Profile, Research, Stock Buzz). We'd love to bring them great brands down the road."

Iconix, which owns 11 consumer brands and holds more than 145 licenses, acquired six brands in the last year. Cole said in a marketplace ripe for new acquisitions, the company was far from slowing down.

"There is so much money out there looking for deals from every source. It's really incredible, the resources -- how liquid the market is," Cole said. "We have not had trouble finding good deals."

Cole, who transformed his old shoe company Candies Inc. into brand licensor Iconix in 2005, said a diverse array of brands prevents the company from leaning too much on any one particular brand, insulating it from ever-changing consumer tastes and the accompanying revenue swings.  Continued...