THE CANADIAN PRESS
TORONTO — Nike Inc. announced Tuesday that it will be acquiring Umbro PLC, the UK-based football-soccer brand.
Nike said the all-cash deal is valued at roughly $4 a share for a total value of $582 million.
Nike president Mark Parker said Umbro’s board gave the deal unanimous support.
Nike has been focusing on growing its soccer revenue for the past decade, going from $40 million to $1.5 billion since 1995.
Umbro, based in Cheadle in northwest England, designs, sources and markets soccer-related apparel, footwear and equipment sold in more than 90 countries.
Umbro, together with its 45 international licensees, supplies uniforms to the national teams of England, Ireland, Sweden and Norway, six English Premier League teams and more than 100 other professional teams globally.
The company reported a net profit of $40.4 million in 2006.
The deal was backed by the Football Association, the governing body for English soccer.
"The FA has enjoyed an excellent partnership with Umbro for more than 20 years," said Brian Barwick, the FA’s chief executive officer. "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, based in Beaverton, Oregon, has been expanding aggressively outside the United States. In the first quarter, it reported revenue growing by 22 per cent in the Asia-Pacific region and 16 per cent in Europe, compared to 2 per cent growth in the United States.
Nike said it intended to operate Umbro as an independent, U.K.-based subsidiary, like its Converse brand.
"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. With its close links to The Football Association and the England team, Umbro’s future is even stronger than its past," said Parker.
Umbro shares were up 14 per cent in early trading on the London Stock Exchange at $3.85.