Beaverton, Oregon, November 15 (ots/PRNewswire) -
NIKE, Inc. (NYSE: NKE) today announced that it has reached a
definitive agreement to sell its Starter brand to Iconix Brand Group,
Inc. (Nasdaq: ICON) for US$60 million in cash. Nike expects the
transaction to be completed in December.
"We're pleased to have found a buyer committed to investing in and
growing the Starter brand," said Nike Inc. President and CEO Mark
Parker. "Under Nike's ownership, Starter has significantly
strengthened its brand and product design and development
capabilities. It is a difficult decision to divest any business, but
we have found the right buyer and this is the right choice for Nike.
Iconix is a well-respected brand builder and manager."
Nike decided to divest Starter, acquired in 2004, following a
strategic review of the company's Exeter Brands Group, of which
Starter is the main business. As part of the company's long-term
growth strategy, Nike is optimizing its portfolio of subsidiary
brands, which contribute more than US$2 billion in annual revenues,
to ensure the company is investing in the greatest growth
opportunities with the highest returns. Exeter is the smallest
subsidiary in Nike's portfolio. Starter's growth potential relative
to other brands in Nike's portfolio, such as Converse, Cole Haan,
Hurley and Nike Golf, resulted in the decision to divest. Nike also
recently announced its intent to explore the sale of Nike Bauer
Hockey. That exploration process is still under way.
Founded in 1971, Starter pioneered the league licensed apparel
business through agreements with Major League Baseball, the National
Basketball Association, the National Hockey League and the National
Football League. Starter is distributed primarily in the United
States through Wal-Mart, and internationally through licensees.
Neil Cole, Chairman and CEO, Iconix, stated, "Starter is an iconic
brand that diversifies our portfolio of holdings by moving us into
the athletic apparel, team sports and athletic footwear categories.
It is a brand with a great deal of growth potential, both in the
United States and around the world, and one which I am confident that
Iconix can quickly add a lot of value. We are very excited to be
working with Wal-Mart on this project and believe that with their
reach and our marketing expertise Starter has the potential to become
one of the largest athletic apparel and footwear brands in the
About NIKE, Inc.
NIKE, Inc. based near Beaverton, Oregon, is the world's leading
designer, marketer and distributor of authentic athletic footwear,
apparel, equipment and accessories for a wide variety of sports and
fitness activities. Wholly owned Nike subsidiaries include Converse
Inc., which designs, markets and distributes athletic footwear,
apparel and accessories; NIKE Bauer Hockey Inc., a leading designer
and distributor of hockey equipment; Cole Haan, a leading designer
and marketer of luxury shoes, handbags, accessories and coats; Hurley
International LLC, which designs, markets and distributes action
sports and youth lifestyle footwear, apparel and accessories and
Exeter Brands Group LLC, which designs and markets athletic footwear
and apparel for the value retail channel. For further information
about Nike visit www.nikebiz.com.
About Iconix Brand Group, Inc.
Iconix Brand Group Inc. owns, licenses and markets a growing
portfolio of consumer brands including CANDIE'S (R), BONGO (R),
BADGLEY MISCHKA (R), JOE BOXER (R), RAMPAGE (R), MUDD (R), LONDON
FOG (R), MOSSIMO (R), OCEAN PACIFIC (R), OP (R), DANSKIN (R), ROCA
WEAR(R), CANNON (R), ROYAL VELVET (R), FIELDCREST (R) and CHARISMA
(R). The Company licenses it brands to a network of leading
retailers and manufacturers that touch every major segment of retail
distribution from the luxury market to the mass market in both the
U.S. and around the world. Iconix, through its in-house advertising,
promotion and public relations agency, markets its brands to
continually drive greater consumer awareness and equity.
Web site: http://www.nikebiz.com
ots Originaltext: Nike, Inc.
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Investors, Pamela Catlett, +1-503-671-4589, or Media, Alan Marks,
+1-503-671-2673, both of NIKE, Inc. /Photo: NewsCom:
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