Nike Inc. (Beaverton, Ore.) announced that it has acquired 100 percent of the equity shares of Official Starter Properties LLC and Official Starter LLC for a net purchase price of approximately $43 million. The entities are the sole owners and licensors of the Starter, Team Starter and Asphalt brand names as well as master licensee of the Shaq and Dunkman brands, a line of athletic apparel, footwear and accessory products for the value retail channel.
The business will be operated by Exeter Brands Group LLC, a newly created operating unit of Nike Inc., dedicated to building brands in the value retail channel. Effective immediately, Mary Gleason, former president and ceo of Group 3 Design, the brand management company that has managed the Starter brand since 1999, will become president of the New York-based Exeter Brands Group. Gleason will report directly to Scott Olivet, vp, Nike Inc. subsidiaries, who also oversees Converse, Hurley, Cole Haan and Bauer Nike Hockey.
“The acquisition of Starter is the next step in the evolution of Nike's multi-brand portfolio growth strategy and will allow us to capitalize on an important value channel opportunity,” says Tom Clarke, Nike's president of new business ventures. “Over the past three years, value retailers have grown rapidly in the U.S. athletic footwear and athletic apparel markets. This acquisition gives us a profitable existing business and a platform for future growth in a channel not currently served by our current brand portfolio.”
“Joining the Nike team is an incredible opportunity for me personally and professionally,” says Gleason. “By leading the Exeter Brands Group, I can continue to build on the brand momentum and market opportunities we have created over the last five years. The Nike portfolio of brands has had great success. I look forward to working with the Nike senior management team and sharing my knowledge of the value channel and learning from their expertise and success in building global brands.”