Nike to sell Umbro, Cole Haan brands

BEAVERTON, Ore. — Nike says it plans to sell two of its brands — Umbro soccer gear and Cole Haan shoes and accessories — to cut costs and focus on its namesake brand.

The company says more potential lies in its Nike products and its Jordan, Converse and Hurley brands.

Strong demand for Nike’s shoes and clothes has helped the company charge past many rivals. But, like most consumer product makers, Nike Inc. faces rising costs for packaging, fuel and other raw materials.

It recently launched two high-profile lines: FlyKnit lightweight shoes and Nike+ training software and gear.

The company acquired Cole Haan in 1988 and UKbased Umbro in 2008. receive $2.75 per share, which is less than the $3.05 per share previously offered by the private equity firm but more than double Wednesday’s closing price of $1.29. It’s also a 76 percent premium to the closing price on December 6, when Sycamore made its first offer of $3 per share.

The Hingham, Mass., retailer has about 70.3 million outstanding shares, according to FactSet.

Including debt, the companies value the transaction at about $369 million.

“We are pleased with the value this transaction delivers to our stockholders and believe that this is a positive development for all of our stakeholders,” Talbots President and CEO Trudy Sullivan said in a statement.

Talbots said Friday that a deadline expired on its exclusive talks with Sycamore without a deal in place. Sycamore had told Talbots that it wasn’t prepared to execute a transaction at that time. Talbots said it remained open to pursuing a transaction with Sycamore but since the exclusivity period had expired, it would actively explore other options.

Talbots’ board has approved the acquisition by Sycamore, which is expected to close in the third quarter.

The company had 516 stores in 46 states and Canada at the end of the first quarter.