NIKE acquired Converse Inc. for approximately $305 million, a transaction completed in September 2003, structured as all cash.
Converse Inc. operates in Footwear & apparel brand (Converse), is based in North Andover, Massachusetts, USA. Globally recognized footwear brand based in North Andover, Massachusetts with nearly a century of sports heritage, known for heritage products including the Chuck Taylor All Star and Jack Purcell lines alongside performance footwear. Nike acquired 100 percent of the equity shares for approximately $305 million plus the assumption of certain working capital liabilities.
Nike's strategy for growing through non-Nike brands is to identify strong brands with superior management teams where Nike can directly assist in the company's growth; Converse met that criteria and offered potential to drive greater revenue and earnings performance.
A strong, globally recognized brand with deep sports heritage and a superior management team — fitting Nike's criteria for growth through non-Nike brands. Access to a dynamic consumer base and expansion of Nike's diverse brand portfolio to create long-term shareholder value. Operated as a standalone Converse brand within Nike, Inc.
Converse is one of the strongest footwear brands in the world with great heritage and a long history of success. Converse's management has done an excellent job of reestablishing this beloved brand with consumers and we look forward to supporting them as they continue to implement their growth strategy.Tom Clarke, President of New Business Ventures, Nike, Inc.
Over the past two years, we have rebuilt and reinvigorated the Converse brand to its long-standing position as America's Original Sports Company, but our job is not done. Our partnership with Nike creates significant opportunity for us to execute our vision for building a leading global sports footwear and apparel brand.Jack Boys, Chief Executive Officer, Converse Inc.
Advisory firms were not disclosed for this transaction.