Nike Inc. (NKE) Friday agreed to sell its Cole Haan affiliate brand to Apax Partners for $570 million, in an effort to focus on brands that bring in strong returns. The deal is expected to close early 2013.
"The decision to divest of Cole Haan allows us to sharpen our focus on opportunities with the highest potential for strong returns...," said Nike CEO Mark Parker.
Nike in May said it will divest Cole Haan and Umbro brands to sharpen its focus on driving growth in the Nike, Jordan, Converse and Hurley brands.
The company last month announced the sale of the Umbro brand to Iconix Brand Group for $225 million, much lower than its acquisition price of $565 million in 2008.
Nike bought Cole Haan in 1988 for $80 million, in addition to $15 million in debt. The brand recorded sales of $535 million in the fiscal year ended May 31.
Nike stock is trading at $91.58, up 0.83%, on a volume of about 1 million shares on the NYSE.
by RTT Staff Writer
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