Nike to Sell Umbro Brand to Iconix for $225 Million

Nike said on Wednesday that it planned to sell its Umbro soccer brand to the Iconix Brand Group for $225 million to slim down its product offerings.

The deal comes fives months after Nike announced it would sell both Umbro and the Cole Haan lifestyle brand in a streamlining effort. The move is essentially an unwinding of previous diversification efforts.

But selling Umbro, which Nike acquired in 2008, will not leave the company without a presence in the global soccer market: it still sells the Nike Football line of gear.

“It is a difficult decision to divest any business, but this action will enable us to focus on our highest-potential growth opportunities,” Mark Parker, Nike's chief executive, said in a statement. “Umbro has a great heritage, but ultimately, as our category strategy has evolved, we believe Nike Football can serve the needs of footballers both on and off the pitch.”

The transaction will pass Umbro to Iconix, a “virtual” fashion company run by Neil Cole, brother of the designer Kenneth Cole. It essentially licenses brands to retailers like Wal-Mart Stores and Target that actually manufacture and sell the merchandise.

“Umbro is a true, authentic football brand with a global loyal consumer fan base, and we are thrilled to be adding it to our portfolio of iconic brands,” Neil Cole said in a statement.

Among properties owned by Iconix are Candie's shoes and the Mossimo, Marc Ecko and Badgley Mischka clothing brands. But the company has branched out from apparel: in 2010 it bought an 80 percent stake in the Peanuts brand, giving it licensing rights to Charlie Brown and Snoopy.

Two years ago, Iconix held talks to buy Kenneth Cole, potentially uniting the Cole brothers' empires. But those talks foundered.

Since then, Neil Cole has purchased the rights to the Ed Hardy and Sharper Image brands.

Speaking of brothers, the name Umbro is derived from the Humphreys brothe rs, who started the business in 1924 in Cheshire, England. The company makes the uniforms for a number of soccer teams, including England's national team.

The Umbro deal is expected to close by the end of the year.