UK: Umbro shareholders accept $565m Nike offer

31 January 2008 | Source: just-style.com

The shareholders of UK football brand Umbro have voted in favour of a proposed GBP285 (US$565m) takeover offer from sporting goods giant Nike today (31 January).

Shareholders have approved two votes on the all-cash acquisition, which was unanimously recommended by Umbro's board last October and has since been given the nod from retailers Sports Direct and JJB Sports - both significant shareholders.

Pending the court hearings and final regulatory approvals, Nike said its wholly owned subsidiary Nike Vapor expects to complete the acquisition in early March.

Mark Parker, president and CEO of Nike, said: "We are pleased that shareholders have accepted our offer, and we are excited to have Umbro join the Nike family.

"We look forward to completing the acquisition, working with the Umbro team and investing in the long-term growth of this iconic football brand, and continuing a strong relationship with the Football Association."

Oregon-based Nike, whose portfolio of brands includes Converse, Cole Haan and Hurley International, has said it intends to operate Umbro as a stand-alone brand.

The merger was handed a boost last month when Nike acquired 19.9% of Sports Direct's holdings in Umbro, together with irrevocable undertakings for its remaining 10% stake.

JJB, which owns 10.12% of Umbro, has also entered into an irrevocable undertaking with Nike to vote in favour of the acquisition.