Iconix Brand buys Umbro assets from Nike

Apparently, the Umbro brand has some value after all.

Just weeks after essentially gutting the brand of all of its value contracts, Nike has managed to pull off a coup with soccer apparel brand Umbro, selling the brand and related intellectual property to Iconix Brand Group for $225 million in cash.

The transaction is expected to close before the end of the year.

Nike, which purchased the Umbro brand in 2007, recently took over Umbro’s role of supplying the kits for England FA. Nike had also stated that they would take over Umbro’s existing contract to supply kits to Manchester City F.C.. Both moves left Umbro as a brand name with no viable, major contracts. Apparently though, that brand name is worth more than $200 million in cash.

“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,” stated, Neil Cole, CEO of Iconix. “Umbro is an exciting acquisition with more than 30 licensees in over 100 countries with a devout following. We look forward to working with our international partners to maintain and expand upon the rich heritage of the brand,” Cole added.

Even before Nike had stripped Umbro of its England FA contract, the global brand had already decided to sell off their maligned subsidiary. Finding a buyer in Iconix seems to only fit Nike’s overall strategy,

“It is a difficult decision to divest any business but this will enable us to focus on our highest-potential growth opportunities,” said NIKE, Inc. President and CEO, Mark Parker. “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.”

Iconix’ purchase of Umbro will move the company’s yearly sales to upwards of $13 billion. Umbro marks the second purchase Iconix has made from Nike, as they purchased the Starter brand in 2007.

(via Iconix)