Umbro has entered into an agreement to acquire a 25% stake in Team & Sports Ltd., the current licensee distributing Umbro product in China, Hong Kong and Taiwan. Umbro will pay a total consideration of $12 million for the stake in the company.
Unbro will pay $4.5 million on completion, $2.4 million in 2006 and the balance based on the level of sales achieved by Team & Sports through to 2010.
The dea was funded entirely with cash. Umbro has a longstanding relationship extending over 15 years with Team and Sports.
Umbro said that this investment will provide the company with an interest in the distribution of its products into China, a region which represents one of the key opportunities for the future growth of the Company's business.
