Iconix Brand Group Inc. is making another big buy.
The company said today it will acquire Umbro from Nike Inc. for $225 million in cash. The deal is expected to close by end of year.
“Umbro is a true, authentic [soccer] brand with a global loyal consumer fan base, and we are thrilled to be adding it to our portfolio of iconic brands,” Neil Cole, CEO of Iconix, said in a statement. “Umbro is an exciting acquisition with more than 30 licensees in over 100 countries with a devout following. We look forward to working with our international partners to maintain and expand upon the rich heritage of the brand,” Cole added.
Nike, which is focusing more on its core businesses, said the deal was the right move for the company.
“It is a difficult decision to divest any business, but this will enable us to focus on our highest-potential growth opportunities,” said Nike President and CEO Mark Parker. “Umbro has a great heritage, but ultimately, as our category strategy has evolved, we believe Nike Football can serve the needs of footballers both on and off the pitch.”
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