Nike, Inc.'s wholly owned subsidiary Nike Vapor Ltd. has acquired 19.9% of Sports Direct International's holdings in Umbro plc. The shares were purchased at 193.06 pence per share ($3.83), which is the all-cash offer price Nike announced on October 23 to acquire Umbro. Sports Direct International has also given an irrevocable undertaking to vote its remaining 10% stake in Umbro in favor of the Transaction at the Court Meeting and General Meeting to be held on January 31, 2008. This irrevocable undertaking will remain binding in the event that a competing offer for Umbro is announced.
Mark Parker, President and CEO of Nike, said, “We are pleased to have acquired this strategic stake in Umbro, which gives us a strong platform from which to proceed with our acquisition of this iconic football brand. We remain fully committed to our compelling offer for Umbro, which continues to have the support of both Umbro's Board of Directors and the Football Association.”
On October 23, Nike announced that it has reached agreement for an all-cash offer of GBP 285 million (approximately $565 million) to acquire Umbro. The Board of Directors of Umbro plc has unanimously recommended that shareholders accept the offer. The acquisition will significantly expand Nike's position in football, a key growth category for the company. Nike intends to operate Umbro as a stand-alone brand, with a focus on accelerating Umbro's existing growth strategy.
Umbro's shareholders are scheduled to vote on the Transaction at the Court Meeting and General Meeting to be held on January 31, 2008.
