Nike offloads Umbro label in £140m deal

By PETER RANSCOMBE
Published on 25/10/2012 00:00

SPORTSWEAR maker Nike has sold Umbro for $225 million (£140m) to Iconix Brand Group, owner of Madonna’s Material Girl label, rapper Jay-Z’s Rocawear and 80 per cent of the rights to the Peanuts comic strips featuring Charlie Brown and Snoopy.

Nike took Umbro private in 2007 in a £285m deal but announced plans earlier this year to sell the label, leaving the US firm to concentrate on its eponymous brand and its Converse, Hurley and Jordan ranges.

The company had bought Umbro, which was founded in Manchester in 1924, to help it break into the market for football team kits. But Nike now believes its own brand can stand on its own two feet.

Mark Parker, Nike’s chief executive, said: “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.”

New York-based Iconix Brand Group owns 29 consumer brands across sectors including athletics, entertainment and fashion. Buying Umbro will push up its annual sales to about $13 billion.

Umbro makes shirts for football clubs including Hearts and Rangers and for national sides such as England and the Republic of Ireland.