Umbro said it received a buyout offer from an unnamed suitor. The
U.K. soccer brand didn't provide any further details, but sources
told Reuters that the bid came from Nike Inc. Shares in the
Cheshire-based sportswear brand, whose most prized asset is the
England soccer team sponsorship, rose almost 30% after the
announcement, valuing the company at £223m ($456m). The statement was
in response to speculation about a buyout offer.
The Umbro acquisition fits in with Nike's stated goal of becoming the
leading global soccer brand by the 2010 World Cup, and its plans to
grow partly through acquisitions. Nike declined to comment on the
report.
Some speculation surfaced that Sports Direct, which has recently built
a 15% stake in Umbro, was the would-be acquirer. But neither the sports
retailer nor its founder Mike Ashley are believed to be involved.
Sports Direct recently acquired the Everlast brand, and also owns the
Dunlop, Lonsdale and Slazenger brands. Its core business is the
U.K. sporting goods discount chain, Sports World.
