Nike Sells Starter to Iconix Brand Group
November 15 2007 - 4:30AM
PR Newswire (US)
BEAVERTON, Ore., Nov. 15 /PRNewswire-FirstCall/ -- 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 $60 million in cash. Nike expects the transaction
to be completed in December. (Logo:
http://www.newscom.com/cgi-bin/prnh/19990818/NIKELOGO) "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 $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 world." 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
http://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.
http://www.newscom.com/cgi-bin/prnh/19990818/NIKELOGO
http://photoarchive.ap.org/ DATASOURCE: NIKE, Inc. CONTACT:
Investors, Pamela Catlett, +1-503-671-4589, or Media, Alan Marks,
+1-503-671-2673, both of NIKE, Inc. Web site:
http://www.nikebiz.com/
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