Nike hands Starter to Iconix
American consumer brands company Iconix Brand Group, Inc. has agreed to buy the Starter brand from Nike, Inc. for $60 million in cash. The acquisition is expected to close in December.
Nike acquired Starter in 2004 but has decided to sell the company as part of its streamlining operations. The company, which was founded in 1971 and is known for its Starter-brand jackets, is currently licensed to several manufacturers and wholesalers selling primarily to Wal-Mart in the US, Canada and Mexico. Iconix also owns the Danskin Now and OP brands, which are also licensed to Wal-Mart. Iconix expects 2008 royalty revenue from Starter to be approximately $18 million.
Chairman and CEO, Neil Cole, said: "Starter is an iconic brand that diversifies our portfolio of holdings by moving us into the athletic apparel, team sports and athletic footwear categories. It is a brand with a great deal of growth potential, both in the United States and around the world, and one to which I am confident that Iconix can quickly add a lot of value.”
