NIKE acquires Converse Inc.
Snapshot
NIKE acquired Converse Inc. for approximately $305 million in September 2003. The transaction was structured as all cash. Converse Inc. is a North Andover, Massachusetts, USA-based Footwear & apparel brand (Converse) business.
- Acquirer
- NIKE
- Target
- Converse Inc.
- Value
- approximately $305 million
- Date
- September 2003
- Type
- full acquisition
- Status
- ready
The deal at a glance
About this deal
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.
No advisory firms have been disclosed for this transaction.