Nike (NKE -0.74%) is selling its Umbro affiliate brand to Iconix Brand Group (ICON) for $225 million, the company announced Wednesday. The deal is to be finalized by the end of this year.
Nike bought Umbro for $578 million in 2008 to improve its soccer-related line of apparel and equipment. But Nike now feels its own brand is strong enough to draw in the soccer crowd.
"Umbro has a great heritage, but ultimately, as our category strategy has evolved, we believe Nike Football can serve the needs of footballers both on and off the pitch," said Nike CEO Mark Parker.
Iconix, a New York-based company whose brands include Joe Boxer, London Fog, Ed Hardy, and Danskin, is excited with the purchase. "Umbro is a true, authentic football brand with a global loyal consumer fan base and we are thrilled to be adding it to our portfolio of iconic brands," said Iconix CEO Neil Cole. "Umbro is an exciting acquistiion with more than 30 licensees in over 100 countries with a devout following."
