Nike Inc. has sold soccer brand Umbro to Iconix Brand Group Inc. at a discount to its purchase price in 2008, and is expecting bids today for footwear and accessories brand Cole Haan.
Nike said in May it was divesting the two brands to “sharpen its focus on driving growth in the Nike, Jordan, Converse and Hurley brands.”
In September, when the Cole Haan auction entered its second round, Apax Partners, TPG Capital, Leonard Green & Partners and Genesco Inc. were said to be in the running.
Since then, Apax and TPG continue to remain interested, financial sources said. Sycamore Partners, which acquired The Talbots Inc. this year and a 51 percent stake in sourcing firm Mast Global Fashions last year, is also said to be bidding for Cole Haan. It couldn’t be determined whether Leonard Green advanced to the next round of bidding, although Genesco is believed to have dropped out.
Nike is asking $500 million for Cole Haan, which it acquired in 1988 for $95 million, consisting of $80 million in cash and $15 million in debt. For the fiscal year ended May 31, Cole Haan’s revenues rose 3 percent to $535 million. The brand has 109 U.S. stores and another 69 doors abroad.
If Nike could get its asking price for Cole Haan, that would offset the loss it took in the Umbro sale.
Iconix has inked an agreement to buy Umbro for $225 million, or a $357 million discount to the $582 million that Nike paid for the brand in 2008.
Iconix said Wednesday that the transaction, which includes the intellectual property assets, is expected to close by the end of the year. The brand-management firm also said it would disclose details of the transaction on Tuesday, when the company reports third-quarter earnings.
Umbro is a British soccer lifestyle brand founded in 1924 by brothers Harold and Wallace Humphreys.
Neil Cole, chief executive officer of Iconix, said, “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.”
Nike Inc. president and ceo Mark Parker said that as Nike’s category strategy has evolved, the company believes “Nike Football can serve the needs of footballers both on and off the pitch.”
Iconix said the latest acquisition to the company’s brand umbrella will together generate “$13 billion in retail sales globally, with more than $2.5 billion attributable to the company’s portfolio of athletic brands, which also includes Starter and Danskin.”
Umbro is the second deal between Iconix and Nike. Iconix acquired the Starter brand from Nike in 2007.
Breaking News: @louisvuitton's men's artistic director @mrkimjones is leaving the French fashion house after nearly 7 years. Jones joined Louis Vuitton in 2011, following a three year tenure as creative director of British luxury goods brand Alfred Dunhill. Jones is to exit Louis Vuitton after showing his fall 2018 collection for the brand in Paris on Thursday. Read the full exclusive story on WWD.com. Link in bio. #wwdnews #wwdfashion
For men’s fall 2018, @giuseppezanotti drew on elements from streetwear, sport, biker, combat and rock ‘n’ roll. Pictured here are a pair of shoes from the collection, featuring zippers, rhinestones, and silver hardware. Head to WWD.com to see a roundup of the accessories from Milan’s men’s fall 2018 shows. #wwdfashion (📷: Andrea Delb)
To celebrate the 25th anniversary of @ralphlauren’s snowboarding collection, the brand is mining its archives. The iconic brand is reintroducing vintage styles and dropping new designs for a color capsule that will be available in Ralph Lauren stores and @openingceremony on January 25. The capsule will consist of 10 pieces, including the Snow Beach Pullover, pictured here, which is a collector’s item that rapper Raekwon wore in Wu-Tang Clan’s “Can It Be All So Simple” video. #wwdfashion (📷: Tom Gould)
For @rochasofficial’s pre-fall 2018 collection, creative director Alessandro Dell’Acqua channeled the sophisticated and intriguing Catherine Denevue in the film “Belle de Jour.” Polished collarless coats, midi skirts, suits and ’60s graphic motifs were all featured in the collection, adding a sense of discreet luxury. See the rest of the photos on WWD.com #wwdfashion
“We tried to produce clothing of that couture quality, but the most daunting part was that we only had a matter of days [to do it],” said costume designer Lou Eyrich, who recreated Gianni Versace’s iconic looks for @americancrimestoryfx. Eyrich searched online retailers and vintage shops for original pieces from the design house and for @penelopecruzoficial, who plays Donatella Versace. Head to WWD.com to read how she created the Versace world. #wwdfashion
Only three months after her stellar debut catwalk season, @kaiagerber has inked her first big design collaboration –– with @karllagerfeld. The collection blends Lagerfeld’s Parisian chic aesthetic and the model’s signature West Coast casual style via RTW, accessories, footwear and more. The #KarlLagerfeldxKaia collection will launch in September with a series of events. Get all the details on WWD.com. #wwdnews #wwdfashion
Harrods plans to remove the famous statue of Princess Diana and Dodi Al Fayed from the bottom of the Egyptian escalators and hand it back to Mohamed Al-Fayed. “We are very proud to have played our role in celebrating the lives of Diana, Princess of Wales and Dodi Al Fayed at Harrods and to have welcomed people from around the world to visit the memorial for the past 20 years,” said Michael Ward, Harrods managing director. “With the announcement of the new official memorial statue to Diana, Princess of Wales at Kensington Palace, we feel that the time is right to return this memorial to Mr. Al Fayed and for the public to be invited to pay their respects at the palace.” More on the news, with reporting by @loreleimarfil, at WWD.com. #wwdnews