PEANUTS FOR SALE
Hurting Iconix seeks buyer: sources
Snoopy is sniffing around for a new dog house.
Iconix Brand Group, the licensing firm that holds a majority stake in Peanuts Worldwide LLC — owner of Snoopy, Charlie Brown and the rest of the 66-year-old group of kids — is shopping for a buyer, according to sources familiar with the situation.
The move comes just three months after MetLife dumped Peanuts from its marketing and advertising.
The insurance giant had used Snoopy, the lovable beagle, and other Peanuts characters as a major part of its marketing plan for 30 years — until it decided last year to exit the consumer life insurance business.
MetLife’s move left embattled Iconix — which also owns Candie’s, Joe Boxer, London Fog, Starter and Strawberry Shortcake brands, among others — with a gaping revenue hole to fill.
The Peanuts gang generates about $95 million a year in revenue from more than 100 countries and is Iconix’s strongest-performing brand — representing about 25 percent of the company’s business, analysts said.
MetLife alone contributes about $12 million a year. Its contract expires in 2019.
Among the interested buyers are Chinese companies, which are eager to satisfy the insatiable demand in Asia for all things Peanuts. Japan, where a Snoopy museum opened last year, is Peanuts’ largest international market.
Iconix is also looking to sell its Strawberry Shortcake brand, according to Reuters, which first reported that Iconix is shopping Peanuts.
New York-based Iconix is working with investment bank Guggenheim Partners on an auction process to sell the brands, according to Reuters.
Iconix, which has a market capitalization of $553 million, did not respond to a request for comment.
In December, Iconix sold its Sharper Image brand to ThreeSixty Group for $100 million.
Iconix reported a net loss in 2015 of $189 million and that profits fell 31 percent, to $60 million, in the nine months ended Sept. 30.
It is saddled with $1.2 billion in debt.
The company acquired an 80 per- cent stake in the Peanuts gang from E.W. Scripps in 2010 for $175 million. Charles M. Schulz Creative Associates, which is controlled by the Schulz family, owns the remaining 20 percent.
The Schulz family has kept tight control over the brand and gets 75 percent of the revenue from royalties, industry insiders said.
“The Schulz family would never sell to such companies as Disney or Marvel because [the family] has iron- clad rights on the use of the characters in ‘Peanuts,’ ” said a source.
In 2015, Twenty-First Century Fox released “The Peanuts Movie,” which grossed $246 million worldwide — but was overshadowed by “Star Wars” and fell short of Iconix’ expectations because retailers were pushing “Star Wars” merchandise at the time.
Shares of Iconix closed up 4.47 percent, to $10.29, on Tuesday.