Nike, Inc. has acquired 100% of the equity shares of Official Starter Properties LLC and Official Starter LLC for a net purchase price of approximately $43 million. The entities are the sole owners and licensors of the Starter, Team Starter and Asphalt brand names as well as master licensee of the Shaq and Dunkman brands, a line of athletic apparel, footwear and accessory products for the value retail channel.

The business will be operated by Exeter Brands Group LLC, a newly created operating unit of Nike, Inc. dedicated to building brands in the value retail channel. Effective immediately, Mary Gleason, former president and CEO of Group 3 Design, the brand management company that has managed the Starter brand since 1999, will become president of the New York-based Exeter Brands Group. Gleason will report directly to Scott Olivet, vice president of Nike, Inc. Subsidiaries, who also oversees Converse, Hurley, Cole Haan and Bauer Nike Hockey.

“The acquisition of Starter is the next step in the evolution of Nike, Inc.'s multi-brand portfolio growth strategy and will allow us to capitalize on an important value channel opportunity,” said Tom Clarke, Nike's president of New Business Ventures. “Over the past three years, value retailers have grown rapidly in the U.S. athletic footwear and athletic apparel markets. This acquisition gives us a profitable existing business and a platform for future growth in a channel not currently served by our current brand portfolio.”

The Starter brand was founded in 1971 and over the next decade pioneered the league licensed apparel business through agreements with Major League Baseball, the National Basketball Association, the National Hockey League and the National Football League. Official Starter Properties LLC and Official Starter LLC acquired the assets of the bankrupt Starter Corp. in 1999.

“Starter is the premier athletic brand in the value retail channel, with a proven track record in delivering high-quality, competitively priced athletic footwear and apparel,” Olivet said. “In addition, Mary Gleason brings strong licensee and retail relationships that can be expanded to capitalize on a largely untapped business opportunity. By combining Starter's existing strengths with Nike's corporate capabilities in design, brand marketing and management of third-party manufacturing, we have the opportunity to provide compelling branded footwear and apparel products to value conscious consumers.”

As president of Exeter, Gleason will manage a portfolio of athletic brands, including Starter, Team Starter, Asphalt, Shaq and Dunkman. Each brand designs, develops and markets apparel, footwear and accessory products to the value retail channel. Gleason and the Exeter Brands Group will be headquartered in New York City.

“Mary has a proven track record and an understanding of value conscious consumers that is unmatched in the industry,” said Olivet. “With Mary's vision and leadership we are confident we will be able to build on the success of the Starter brands in the growing value retail channel.”

Prior to joining Exeter, Gleason was the president and CEO of Group 3 Design, a full-service brand management company with a portfolio of nationally marketed brands. Under Gleason's leadership, Group 3 Design is credited with reviving the Starter brands and building their brand equity in the value channel. Group 3, founded in 1992, also manages the Delia's, McKids and most recently Royal Velvet and Cannon home accessory brands. Gleason's career includes 25 years of fashion apparel, brand management and development with Macy's Corporate, Allied and Belk's.

Andis Akerfelds, co-founder of Group 3 Design with Mary, will assume the new responsibility as Chairman of Group 3. A search is underway for a new president.

“Joining the Nike, Inc. team is an incredible opportunity for me personally and professionally. By leading the Exeter Brands Group, I can continue to build on the brand momentum and market opportunities we have created over the last five years,” said Gleason. “The Nike portfolio of brands has had great success. I look forward to working with the Nike senior management team and sharing my knowledge of the value channel and learning from their expertise and success in building global brands.”