NIKE, Inc. Reaches Agreement to Acquire Umbro

    Move significantly expands Nike's global leadership in football

    BEAVERTON, Ore., Oct. 23  /CNW/ -- NIKE, Inc. (NYSE:   NKE) today announced
that it has reached agreement on an all-cash offer to acquire Umbro plc, a
leading United Kingdom-based global football (soccer) brand with more than 70
years of experience in the world's No. 1 sport and the world's biggest
football market.
    The Board of Directors of Umbro plc, which is listed on the London Stock
Exchange, has unanimously recommended that shareholders accept the offer of
193.06 pence, which together with the declared dividend values the company at
approximately $582 million (285 million pounds sterling), or approximately
$4.00 (195 pence) per share.
    "Umbro is a brand with a powerful heritage and deep experience in the
world's most popular sport and the world's biggest football market," said
Nike, Inc. President and CEO Mark Parker. "With its close links to The
Football Association and the England team, Umbro's future is even stronger
than its past. This dynamic alignment of Umbro and Nike, with our
complementary strengths and numerous ways to segment and grow the market, will
lead the game at every level throughout the world. We are fully committed to
helping Umbro reach its full potential, and we are delighted that Umbro's
board is unanimous in its support of our offer."
    The acquisition will significantly expand Nike's global leadership in
football, a key growth category for the company. Since the early 1990s, Nike
has grown its football revenues from about $40 million to approximately $1.5
billion and established brand leadership in the sport. Umbro sells products
directly or through licensees in more than 90 countries and has sports
marketing relationships with many top football players, teams and leagues,
including the England national team. Umbro's 2006 annual revenues were
approximately $276 million (149.5 million pounds). Umbro reports that if
licensed sales were translated to direct sales based on wholesale cost, total
wholesale equivalent sales were approximately $755 million (409.4 million
    Commenting on the agreement, Umbro CEO Steve Makin said, "This is an
excellent deal for all our stakeholders: it provides great value for
shareholders and exciting prospects for our colleagues, partners and customers
around the world. We will be a stronger and better business as part of Nike
and this deal will allow us to accelerate our existing growth strategy by
leveraging Nike's global resources and expertise. We look forward to taking
Umbro to new levels with Nike's support."
    Brian Barwick, CEO of The Football Association, said: "The FA has enjoyed
an excellent partnership with Umbro for more than 20 years. We are delighted
that the proposed acquisition will allow us to continue our strong historical
relationship with Umbro while benefiting from the marketing expertise and
financial strength of Nike.  Nike has provided firm assurances that The FA
relationship with Umbro will be protected and enhanced, and we look forward to
working closely with both companies moving forward."
    Nike intends to operate Umbro as a stand-alone affiliate brand, with a
focus on accelerating the brand's existing growth strategy. Similar to other
brands in Nike's portfolio, Umbro will benefit from Nike's product research,
design and development expertise, and supply chain and distribution resources.
    Umbro will join a strong and growing Nike portfolio of affiliate brands,
including Converse, which was acquired by Nike in 2003, Cole Haan and Hurley
International. Converse exemplifies Nike's track record of acquiring and
growing complementary brands. Since acquiring Converse in 2003, revenue has
grown at a compound rate of 22 percent, and in fiscal 2007 Converse revenues
grew over 20 percent to surpass $550 million. The brand has benefited from
Nike product design and brand management expertise. Nike's portfolio of other
businesses is contributing more than $2 billion in revenue today, and is
targeted to contribute 25 percent of the company's revenue growth by fiscal
2011. To discuss these developments with analysts and investors, the company
will hold a conference call Tuesday, October 23, at 3 pm ET.

    U.S. Locations:                             (877) 407-0778
    International Locations:                    (201) 689-8565
    The call also will be webcast live at If
you are unable to participate in the conference call or would like to access a
replay of the call, it will be available beginning October 23, 2007, through
October 30, 2007. From U.S. locations, dial (877) 660-6853 and enter account
number 286, conference number 259716 when instructed to do so. From
international locations, dial (201) 612-7415. A replay of the call also will
be available at


    Investor Contact
    Pamela Catlett
     (503) 671-4589

    Media Contacts
    US: Alan Marks, Director of Media Relations: 503 671  2673
    UK: Charlie Brooks, UK Head of Corporate Communications,
        +44 (0)207 432  6390
    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
    This announcement is not intended to and does not constitute or form any
part of an offer or invitation to sell or subscribe for or purchase any
securities or solicitation any vote or approval in any jurisdiction pursuant
to the acquisition of Umbro plc or otherwise.
    The distribution of this announcement in jurisdictions other than the UK
and the US may be restricted by law and therefore any persons who are subject
to the laws of any jurisdiction other than the UK and US should inform
themselves about, and observe, any applicable requirements.

For further information:

For further information: investors, Pamela Catlett, +1-503-671-4589; or 
media, US, Alan Marks, Director of Media Relations, +1-503-671-2673 or UK, 
Charlie Brooks, UK Head of Corporate Communications, +44 0 207 432 6390 Web

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