Nike Sells Starter Brand to Iconix Brand Group

Iconix Brand Group Inc. enters into a definitive agreement with Nike Inc. to purchase the Starter brand for $60 million. Founded in 1971, Starter is currently licensed to several manufacturers and wholesalers, selling primarily to Wal-Mart in the United States, Canada and Mexico. Iconix is forecasting 2008 royalty revenue from Starter of approximately $18 million worldwide. "Starter is an iconic brand that diversifies our portfolio of holdings by moving us into the athletic apparel, team sports and athletic footwear categories. We are very excited by this brand's potential, especially given Wal-Mart's unmatched reach as a retailer and our marketing expertise," says Neil Cole, chairman and CEO, Iconix. Wal-Mart SVP and GMM Dottie Mattison says the retailer is enthusiastic about Iconix’s plans for Starter. “Our customers have responded very positively to our athletic apparel and footwear brands at value price points. Starter is one of our most powerful brands, both in terms of its heritage and the range of different categories it covers," she says.