Is UMBRO Buying Or Running UMBRO?

Recently, according to UMBRO's official website, Iconix Brand Group Inc, an American brand management company, reached an agreement with Hongkong Jordan Investment Limited earlier this month to sell its sports brand UMBRO (Umbro) business in China.

It is reported that the transaction includes all the UMBRO Chinese shares owned by iacennis and the brand intellectual property rights of UMBRO in China, which is expected to bring in cash income of 62 million 500 thousand US dollars for the company.

The transaction is expected to be completed in September 15, 2020.

UMBRO, founded in England in 1924, has been sold in over 90 countries worldwide. UMBRO, which has a history of more than 90 years, is famous for its focus on football related equipment.

In the course of UMBRO's growth, it won the world cup with many green heroes, including the 1966 World Cup champion England. In the same year, UMBRO was the most brilliant historic moment. When entering the last 16 teams, there were 15 teams wearing UMBRO balls.

In 1996, Brazil, which had worked with UMBRO for decades, was picked up by Nike, who was built by basketball and running shoes. In 2002, Manchester United was put into the camp by Nike. Adidas took down Ajax and Chelsea in 2000 and 2006 respectively.

UMBRO's fortunes changed dramatically in 2008. Nike, the US sports giant, bought UMBRO at a price of 285 million.

Then in 2012, Nike announced that it would sell its brand UMBRO to Ai Kang nice brand group at a price of 225 million US dollars.

After that, Ai Connie J bought a 50% stake in UMBRO China from the price of 56 million 400 thousand US dollars from UMBRO Novel Fashion Brands Limited in China and achieved full control of UMBRO China.

In fiscal year 2019, acennis's annual sales volume was $149 million, down 21% from the same period last year, and net loss of $112 million ($100 million in 2018), with a net loss of 95 million US dollars in the fourth quarter.

The Hongkong Jordan Investment Co., Ltd. was founded in 2009. It is a shareholder of Jordan (Xiamen) Industrial Co., Ltd., with a ratio of 25%. It also belongs to Jordan sports Limited by Share Ltd.

Jordan sports Limited by Share Ltd registered the "danqiao" trademark in 1991, and renamed the name of enterprise in 2000 as Jordan sports.

From 2008 to 2010, the annual operating income of the company was 1 billion 158 million yuan, 2 billion 316 million yuan and 2 billion 927 million yuan respectively, and the growth rate of performance was considerable. In 2010, its sales ranked sixth among the local sports brands.

Public information shows that in the first half of 2011, Jordan sports revenue reached a record 1 billion 700 million yuan, with a net profit of up to 280 million yuan.

A few days ago, the United States AIR JORDAN brand sued Jordan China sports company trademark infringement case for many years and finally won.

This acquisition can see Jordan sports's cognition of their own situation. With the constant escalation of local consumption consciousness, the way of the edge ball will definitely make the brand and the consumers go further and further away.

If you want to build a national brand, but the people behind you can't support it. How long can you stay like this?

If losing a lawsuit represents the end, it is better to remind that standing up is not a way. Then get up and run. After all, the acquisition is the overtaking of the curve. It is not necessarily hopeless.