Iconix Brand Group, Inc. signed a definitive agreement to acquire the Umbro brand and related intellectual property assets from Nike, Inc. for $225 million in cash. The transaction is expected to close by the end of the year.
Nike had acquired Umbro in 2008 $582 million.
Founded in 1924, Umbro is the original global football (soccer) brand. Today, the brand combines its British heritage with a modern football (soccer) lifestyle to create iconic sports apparel, footwear.
“Umbro is a true, authentic football brand with a global loyal consumer fan base and we are thrilled to be adding it to our portfolio of iconic brands,” stated, Neil Cole, CEO of Iconix. “Umbro is an exciting acquisition with more than 30 licensees in over 100 countries with a devout following. We look forward to working with our international partners to maintain and expand upon the rich heritage of the brand,” Cole added.
“It is a difficult decision to divest any business but this will enable us to focus on our highest-potential growth opportunities,” said NIKE, Inc. President and CEO, Mark Parker. “Umbro has a great heritage, but ultimately, as our category strategy has evolved, we believe Nike Football can serve the needs of footballers both on and off the pitch.”
Iconix owns 29 consumer brands in the fashion, athletic, electronic, entertainment and home industries. With this acquisition, the company's brands will generate approximately $13 billion in retail sales globally, with over $2.5 billion attributable to the Company's portfolio of athletic brands, which also includes Starter and Danskin. This transaction marks Iconix's second deal with Nike, as it purchased the Starter brand from them in 2007. Starter has flourished under Iconix leadership.
Details of this transaction will be discussed on the Company's third quarter earnings conference call on Tuesday, Oct. 30, 2012.
