NEW YORK — NexCen Brands Inc. has entered into an asset purchase agreement to sell its Waverly brand of decorative fabrics and home furnishings to Iconix Brand Group Inc., a diversified fashion and home brands company.
Under the terms of the agreement, NexCen will receive $26 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 Ltd. acted as the financial advisor to NexCen.
NexCen, parent company of quick-serve brands Marble Slab Creamery, MaggieMoo's, Pretzel Time, Pretzelmaker, and Great American Cookies, also announced that Jack B. Dunn IV has resigned from its board of directors, effective Sept. 25. Dunn was elected director of NexCen on June 28, 2002. Since October 1995, Dunn has been chief executive officer of FTI Consulting Inc.
