Nike (ticker: NKE, exchange: New York Stock Exchange (.N))
News Release -
Nike Sells Starter to Iconix Brand Group
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.
"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
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
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
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.