Iconix Brand Group Completes Acquisition of Umbro from Nike for $225 Million
Iconix Brand Group, Inc has just acquired the Umbro brand and other associated intellectual property assets from NIKE, Inc. The acquisition costs a total of $225 million in cash. The decision to acquire was declared back in October. In 2008, Nike acquired Umbro for $582 million. However, Nike announced its decision to sell Umbro and Cole Haan in May as an attempt to cut costs and concentrate on its core Nike line, Jordan, Converse, and Hurley.
Umbro was found in 1924 and it is an international football/soccer label. In the present, the Umbro brand mixes its British tradition with a modern football lifestyle to produce athletic clothing and footwear. Iconix has acquired Umbro with a $600 million securitized financing facility that they have recently obtained. “We are thrilled to be adding Umbro to our portfolio of iconic brands,” stated Neil Cole, Chairman and CEO of Iconix Brand Group, Inc. “In addition, we believe our ability to secure financing at an attractive price highlights the strength of our brands and our business model. Acquisitions remain a key focus for our company and with our new securitization in place we believe we have significant financial flexibility and are well positioned to continue to grow our business and execute on our acquisition strategy.”
Iconix owns 29 brands and these include fashion, sports, electronic, home, and entertainment labels. After acquiring Umbro, Iconix will produce about $13 billion in revenue internationally. More than $2.5 billion would come from Iconix’s portfolio of sports brands alone. Some of Iconix’s well-known brands include Candie’s, Danskin, and Badgley Mischka.
By Luyao Li