Umbro will acquire a 25% stake in Team & Sports Ltd., Umbro’s current licensee distributing product in China, Hong Kong, and Taiwan. The stake in Team & Sports will cost Umbro a total of $12 million. Upon completion of the deal, Umbro will pay $4.5 million to Team & Sports, with an additional $2.4 million in 2005 and the remainder paid out based on the level of sales generated by Team & Sports through 2010. The deal was funded entirely with cash.

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.