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By Colin Kellaher
Nike Inc. (NKE) on Thursday said it will shift its Nike Brand business in four South American countries to distributor partnerships in a bid to create a more profitable, capital-efficient business model.
The Beaverton, Ore., footwear giant said Grupo Axo, a Mexico-based multi-brand retailer backed by private-equity firm General Atlantic, will acquire its operations in Argentina, Chile and Uruguay.
Brazilian sporting goods retailer Grupo SBF S.A. (CNTO3.BR) will own substantially all of Nike's operations in Brazil.
Nike said it will classify the assets and liabilities of the entities to be sold as "held for sale" on its balance sheet and will post a one-time charge of about $425 million in its fiscal third quarter related to foreign exchange.
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(END) Dow Jones Newswires
February 06, 2020 08:12 ET (13:12 GMT)
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