British sportswear group Umbro, the maker of England's soccer team kit, yesterday agreed to a takeover from US giant Nike in a deal worth £285 million (US$582 million).
Umbro also produces strips for six English Premier League clubs including Everton, West Ham and Wigan. Players like Chelsea's John Terry and Michael Owen of Newcastle endorse the brand.
"The boards of Nike and Umbro are pleased to announce that they have reached agreement on the terms of a recommended cash offer to be made by Nike," the pair said in a joint statement.
Nike said the proposed takeover of Umbro, which is based in Cheadle, near Manchester, would "significantly expand" its presence in a key growth market.
Nike has been expanding into the soccer market over the past few years and aims to become the world's leading soccer brand by the 2010 World Cup in South Africa.
Nike's approach has the backing of English soccer's governing body, the Football Association (FA).
"Nike has provided firm assurances that the FA relationship with Umbro will be protected and enhanced, and we look forward to working closely with both companies moving forward," FA chief executive Brian Barwick said.
Takeover speculation last week caused Umbro shares to rocket.
Umbro chief executive Steve Makin said the Nike offer was an "excellent deal" for shareholders.
"We will be a stronger and better business as part of Nike and this deal will allow us to accelerate our existing growth strategy by leveraging Nike's global resources and expertise," he said.
Nike intends to operate Umbro as a stand-alone affiliate brand in the same way as Converse.
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