NEW YORK: Nike Inc. has agreed to sell its Starter brand to Iconix Brand Group Inc. (ICON) for $60 million. Nike, the athletic apparel company, said Starter's growth potential relative to its other brands, which include Converse and Cole Haan, led to the decision to divest. The deal is expected to close in December.
Nike is also exploring the sale of Nike Bauer Hockey, the company said.
Iconix Brand Group, Inc. confirmed that it has entered into a definitive agreement to purchase the Starter(R) brand from NIKE, Inc. Founded in 1971, Starter pioneered the league licensed apparel business and is currently licensed to several manufacturer/wholesalers selling primarily to Wal-Mart in the United States, Canada and Mexico. Iconix is forecasting 2008 royalty revenue from Starter of approximately $18 million worldwide.
Iconix also owns the brands Danskin Now and OP which are both licensed to Wal-Mart. The acquisition is subject to customary closing conditions including clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended.
Iconix Brand Group, Inc. owns, licenses and markets a growing portfolio of consumer brands. 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.