words // Brennan Hiro Williams
Earlier today, Nike Inc. announced its plans to divest of its Cole Haan and Umbro subsidiaries, sharpening its focus on the NIKE, Jordan, Converse and Hurley Brands. The planned divestitures mark the companies first in four years (Bauer Hockey being the last).
“We see tremendous opportunity to accelerate profitable growth around the world by continuing to deliver innovation and inspire consumers through the NIKE brand.” said Mark Parker, Nike, Inc. President & CEO. “Divesting of Umbro and Cole Haan will allow us to focus our resources on the highest-potential opportunities for NIKE, Inc. to continue to drive sustainable, profitable growth for our shareholders.”
Cole Haan was acquired by Nike, Inc., in 1988 for $80 million, while Umbro was purchased in 2008 for $565 million. Nike hopes to sell both brands by the end of May 2013, when the company's fiscal year concludes.