Nike Inc. agreed to sell leather shoes and handbags manufacturer Cole Haan to private equity fund Apax Partners for $ 570 million as part of an asset separation plan.
Nike, which last month agreed to sell Umbro football equipment and clothing maker to Iconix Brand Group Inc. for $ 225 million dollars, pays more attention to the brand of the same name, as well as divisions of Jordan, Converse and Hurley.
The company earned a higher return on investment from the sale of Cole Haan, a brand that earned $ 31 million in revenue for the last fiscal year ending May 535.
Nike bought Cole Haan in 1988 for $ 80 million, buying back the company's debts of $ 15 million. At the same time, Umbro sold it at a discount to its 2008 acquisition price of $ 565 million.
Nike said it expects the sale of Cole Haan to be completed early next year.
Umbro and Cole Haan make up a relatively small share of Nike. Together, brands generated $ 797 million in sales over the last fiscal year, compared to Nike's total $ 24,13 billion in sales.
Nike is now at the peak of a favorable cycle of athletic shoes, and new products like Nike + FuelBand and Flyknit have caused a great stir, however, slowing demand in China and rising costs have put pressure on the results in recent quarters.
Analysts spoke positively about Nike's plan for asset sales, noting that targeting fewer brands makes sense. Some observers have argued that developing small brands can be tricky in a large company like Nike, as the best design and marketing staff are likely to be recruited into high-end divisions like Jordan.
Before starting to divest assets this year, Nike last ditched the brand in April 2008 when the company sold Bauer Hockey. In late 2007, she also sold the Starter discount clothing line. Based on materials from asiareport.ru.