VF Agrees To Sell Majestic to Fanatics

VF Corp. agrees to sell its Licensed Sports Group (LSG), including the Majestic brand, to Fanatics Inc., further deepening Fanatics’ ties to the sports licensing business. Terms weren’t disclosed. The deal comes slightly more than a year after VF said it was reviewing “strategic alternatives” for LSG, including a potential sale. Under Armour and Fanatics were among the companies reported to be interested in buying the division, which had annual sales of about $500 million. Late last year, Under Armour gained licensing rights for Major League Baseball (MLB) on-field uniforms starting with the 2020 season, ending Majestic’s 12-year run.

Majestic also has fanwear licensing agreements for fleece, t-shirts and hoodies for the NFL, NBA and NHL. VF purchased Majestic in 2007. In addition to Majestic, LSG also is among the largest licensees of Harley-Davidson apparel.

Contacts:

VF, Ed Pfeiffer, Regional Sales Mgr., 267-880-0601,ed_pfeiffer@vfc.com

Agency Business

IMG is named to represent the National Football League in select European and Asian markets, the first time the NFL is using an outside licensing agency. IMG is targeting a range of men’s, women’s and children’s product categories including apparel, accessories, home décor, collaborations with fast-fashion retailers, food and beverage. The first of the licensed products stemming from the IMG agreement are expected to ship in time for the start of the NFL season, says the NFL’s Akash Jain. IMG will handle licensing throughout Europe except for Germany and the UK and Asia, except for China, says Jain. IMG won’t manage the NFL’s existing licensees in Europe and Asia, including Nike, New Era and Electronic Arts, says Jain. “IMG will only focus on identifying new opportunities in our licensing business,” says Jain. The pact is IMG’s second with an NFL-affiliated group, having formed the Football Greats Alliance last year to work with the Pro Football Retired Players Association in managing licensing rights for more than 22,000 retired players. IMG has experience representing a major U.S. sports league for licensing overseas, having long been the agency in Asia for Major League Baseball Properties… Brandgenuity is named to handle global licensing for BMW and opens offices in Munich and Hong Kong, the latter for expanding presence for BMW and other brands it represents in Japan and Korea. Brandgenuity will be targeting apparel and accessories as well as “experience” stores, several of which are in China via licensee Port. Brandgenuity, which replaces Global Icons as BMW’s agent for apparel and interactive and Global Trademark Licensing for toys, will inherit a roster of more than 100 licensees including Puma (apparel). “Because BMW is a luxury automotive brand, we would like to extend it into some of the other luxury product categories and add some nice on-brand collections” in small leather goods, fragrance, watches and eyewear, says Brandgenuity’s Andrew Topkins.

Contacts:

NFL, Akash Jain, VP International Commercial Development, akash.jain@NFL.com

Brandgenuity, Andrew Topkins, Partner, 212-925-0730, andy@brandgenuity.com

Burberry Licensing Beauty Business to Coty

Burberry is licensing its beauty business to Coty five years after buying back the license from Inter Parfums to operate the business itself. Coty will pay about $225 million plus ongoing royalty payments in a deal that gives it the exclusive global license to Burberry’s fragrances and make-up and inventory, Burberry said. The move represents a sharp turn for Burberry, which set up an internal beauty division 2012 after buying back the license from Inter Parfums for $131 million. At the time, it was a bold move in a business where few fashion brands operate their fragrance businesses, the lone exceptions being Channel and Dior. For Coty, the agreement adds another brand to its stable of licensed labels that was extended last year with purchase of Proctor & Gamble’s beauty business that includes Hugo Boss and Gucci. Burberry’s annual revenue from fragrances and make-up was about $300 million. But Burberry posted a $31 million charge relating to the unit in November.

Contacts:

Burberry, Julie Brown, Chief Financial Officer, +44 20 3367 3000;

Coty, Patrice de Talhouët, CFO, 212-389-7300

Delta Sells Junk Food Clothing Co.

Delta Apparel sells Junk Food Clothing to JMJD Ventures for $28 million in a move to reduce its reliance on licensed properties, CEO Robert Humphreys said in a statement. Delta purchased Junk Food in 2005 for $23.5 million. While Delta “enjoyed nurturing” Junk Food, changes at retail have “made it more challenging to be a niche player in the licensed graphics space,” Humphreys said. Junk Food’s sales rose to $43 million last year from $27 million in 2005. Delta will invest the sale’s proceeds to reduce debt and invest in its Salt Life brand and print-on-demand apparel division, Art Gun Technologies. Junk Food sells a range of t-shirts, tank tops and other apparel under licenses including rock (Grateful Dead, Kiss, David Bowie) entertainment (Wonder Woman, Batman, Suicide Squad) and characters (Peanuts, Daffy Duck and Spongebob Squarepants).

Contact:

Delta Apparel, Deborah Merrill, CFO, 864-232-5000

United Solutions Buying Newell Brands’ Rubbermaid Consumer Storage Business

Newell Brands sells its Rubbermaid consumer storage business (container boxes and totes) to storage products supplier United Solutions in an agreement that carries a five-year license for the brand, the company said. Terms of the deal weren’t disclosed. Newell is keeping the Rubbermaid label for food storage. Consumer storage products accounted for less than 5% of Rubbermaid’s annual sales. United Solutions markets stack bins, garbage cans, laundry baskets and other items. Prior to the acquisition, United was a Rubbermaid licensee for trash cans.

Contact:

Newell Brands, Ralph Nicoleti, Chief Financial Officer, 201-610-6600  ​