Nike seeks buyer for Umbro
01 Jun 2012
Nike has announced its intention to sell Umbro in a bid to focus on driving growth in its own brand, along with those of Jordan, Converse and Hurley.
Thursday’s announcement will also see Nike look for a buyer for its Cole Haan footwear and bag brand, with the American firm stating that the process will begin immediately with a goal of completion by the end of the 2013 financial year.
The football-focused Umbro brand was acquired by Nike in 2008 for a reported £285 million. The announcement comes just weeks after Barclays Premier League champion Manchester City switched its kit supplier deal from Umbro to Nike, with the agreement set to start in the 2013-14 season. City’s Umbro sponsorship, which has been in place since June 2009, will continue until the end of the 2012-13 season, after which all kit, training wear and related products will be designed, manufactured and distributed by Nike. The contract will run until 2019.
Commenting on the decision to sell the two brands, Mark Parker, president and CEO of Nike, said: “We see tremendous opportunity to accelerate profitable growth around the world by continuing to deliver innovation and inspire consumers through the Nike brand. We also see significant potential in Jordan, Converse and Hurley, which have unique consumer relationships that complement the Nike Brand. Divesting of Umbro and Cole Haan will allow us to focus our resources on the highest-potential opportunities for Nike, Inc. to continue to drive sustainable, profitable growth for our shareholders.”