NexCen Now Owns The Great American Cookie

NexCen, parent company of Bill Blass, has just bought the Great American Cookie company. It's another move towards building a company that will control risk via diversified holdings. It also owns Athlete's Foot, Waverly Home Furnishings, Pretzel Time, Maggie Moo ice cream and others. But more than that, it is proof that its suffering stock price -- currently at $4.7 down from a 52-week high of $13.18 -- won't stop the group from making acquisitions. The C.E.O. of NexCen is the Wall Street financier Bob D'Loren who helped build Iconix group out of Candie's shoes. When I spoke to him in December about the effect of the stock price on his ability to do deals, he shrugged off concerns saying he'd simply use more debt than stock and take advantage of the lower valuations of his targets. That's what he did. The cookie deal cost him $89 million in debt and only $1.1 million in stock to Mrs. Fields, the former parent company. The deal valued the Great American Cookie Company at 3.6 times revenues. NexCen will soon begin shopping the cookie concept to franchise partners around the globe and analyst Eric Beder at Brean Murray thinks a coffee or donut acquisition could come next. D'Loren told me he plans to buy more luxury fashion brands this year as well. □