US sports brand Nike has struck a deal to buy England football team kit-maker Umbro for US$580 million (£284.4 million).
The acquisition will expand Nike’s association with football – a key growth category for the company. Since the early 1990s, Nike has increased its football revenues from about US$40 million (£19.6 million) to around US$1.5 billion (£735.5 million).
“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 president and chief executive Mark Parker. “With its close links to The Football Association and the England team, Umbro’s future is even stronger than its past.”
Umbro sells products directly and through licensees in more than 90 countries and has sports-marketing relationships with many top football players, teams and leagues. Its 2006 annual revenues were about US$276 million (£135.3 million).
UK sports retailers JJB Sports and Sports Direct had been touted as potential bidders for the brand, with JJB upping its stake in Umbro to 10.1 per cent to protect the supply of England football shirts to its stores, while Sports Direct has a 15 per cent stake.
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