Nike to buy Converse....

ekin 33

Banned
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Joined Apr 18, 2001
from NikeBiz.com:

Nike, Inc. To Acquire Converse, Inc.


Beaverton, OR (9 July, 2003) -- NIKE, Inc. (NYSE:NKE) announced today it has entered into a definitive agreement to acquire Converse, Inc., the globally recognized footwear brand with nearly a century of sports heritage. The total price to be paid for 100 percent of the equity shares is approximately $305 million plus the assumption of certain working capital liabilities at the time of the transactions consummation.

Converse is one of the strongest footwear brands in the world with great heritage and a long history of success, Tom Clarke, Nikes President of New Business Ventures, said. Converses 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. Converse shares our passion for sports and, together, Nike and Converse will generate even greater access to a dynamic consumer base.*

Jack Boys, Chief Executive Officer of Converse, said, Over the past two years, we have rebuilt and reinvigorated the Converse brand to its long-standing position as Americas Original Sports Company, but our job is not done. Our core business in heritage products like Chuck Taylor All Star and the Jack Purcell combined with our traditional performance footwear offerings is a great foundation upon which we plan to build and grow. Our partnership with Nike creates significant opportunity for us to execute our vision for building a leading global sports footwear and apparel brand by growing our core business and expanding our product offerings into other sports performance and lifestyle categories.*

Clarke said, The Nike brand has always been rooted in performance and innovation. We enjoy a broad and deep connection with consumers around the world which has generated over $9.5 billion in annual revenue under the Nike brand. Our strategy for growing through non-Nike brands is to identify strong brands with superior management teams where Nike can directly assist in the companys growth. Converse certainly meets our criteria and its brand equity offers potential to drive even greater revenue and earnings performance. We believe the addition of Converse to our increasingly diverse Nike, Inc. portfolio will contribute to creating long-term shareholder value.*

Consummation of this transaction is subject to regulatory review, including U.S. government review under the Hart-Scott-Rodino Premerger Notification Act.

NIKE, Inc., based in Beaverton, Oregon, is the world's leading designer and marketer of authentic athletic footwear, apparel, equipment and accessories for a wide variety of sports and fitness activities. For fiscal year 2003 ended May 31, NIKE, Inc. revenue totaled $10.7 billion. Wholly owned Nike subsidiaries include Cole Haan, which markets a line of high-quality men's and women's footwear, accessories and outerwear; Hurley International LLC, which markets action sports and teen lifestyle apparel; and Bauer NIKE Hockey Inc., which manufactures and markets hockey equipment.

Converse, Inc. based in North Andover, Massachusetts, is a designer, distributor, and marketer of high performance and casual athletic footwear and apparel. Founded in 1908, Converse has created such legendary shoes as the Chuck Taylor All Star, the Jack Purcell, One Star, and other authentic heritage products. Converse sells its products in over 12,000 athletic specialty, sporting goods, specialty, department and national chain stores across the United States and Canada, and through 42 licensees in over 100 countries. Full-year 2002 Converse, Inc. revenue totaled $205 million. Worldwide wholesale sales of all products bearing the Converse brand, generated by Converse, Inc. and its licensing partners and affiliates (excluding Japan), were approximately $390 million for 2002.
 
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Joined Jul 9, 2003
wow, lookin forward to see how nike develop the helium technology

might be zoom air filled with helium :rofl:

MSN:synequano@hotmail.com
Email:synequano@yahoo.com
AIM:synequano
 
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Joined Jan 24, 2001
I hope Nike can bring Converse almost back to its peak. I say almost, because I'd still rather wear the Swoosh than the star and Chevron -- it would still be good to see Converse back at a respectable level, esp. since Reebok's workmanship is becoming elusive. |I

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OH CRAP!

This can't be good. Nike is probably gonna kill the Converse performance lines, and up the prices of retros. Monopoly is a BAD thing. :evil:

Conquering the world, one court at a time
 
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Joined Jul 25, 2000
damn,better stock up on chucks before nike jacks up the prices
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HATERADE: The preferred beverage of niketalk board members.
 

spy00007

Banned
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Joined Sep 4, 2000
Why would Nike want Conervse? Converse strength is only a handful of shoes. How many Chucks will have to be sold before Nike recoupes their losses on purchasing Converse? IMO Nike only purchased converse for the name and the heritage.
 
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Joined Dec 6, 2002
I am pissed and exciting at the same time. As some of you know Converse is my brand and I started wearing converse in 1996 because I was tired of Nike and their sweatshops. I've taken a hard stance as that being my reason for only wearing Converse.

But at the same time I want the company to grow be to where it was with Bird Magic and Dr.J


I don't know what to think about this. I am not a nike hater at all, I respect what they've done. But at the same time I made a choice not to support them anymore.


But I sure would kill to see Melo or Lebron rocking some Pro Leathers. Along with some Helium running shoes. But i'd say only the last is realistic.

Sorry If all this seems odd but I really wanna see what happens with this
 
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Joined Feb 8, 2003
Can any1 say.... Converse Weapons SB? or not...
1987 - ????

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Emi..thanks for being fione.
 
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Joined Oct 13, 2000
Converse has shown it can't sell shoes under its name in the past 10 years unless it is a retro from the 80's. Nike won't make it any different, just keeping the name alive basically and breaking even with it.
"You can prance, and you can dance, but when it comes to relations...keep it in your pants!" - Kurt Angle

Are you DMXperienced?

Bret Hart - The best there is, was and ever will be? No doubt!
 
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Joined Dec 6, 2002
If you were Nike would you give Converse Kobe, Melo, or someone else to jump start their Performance BBall shoes? I know at one point Kobe wore Weapons in a game this year so It wouldn't be completely out of the question.


Dmx I disagree. The All-Star 2000 was a very popular and great shoe in 1996-97.
 

gj

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Joined Aug 1, 2001
This is one of the strangest things I've read from Nike. Seems to me to be a great pick-up. 305mil$ is nothing to Nike, and the all-star is the best selling shoe ever. No matter what the trends are the all-star will always sell, I'm sure Nike could re-coup the money just by selling all-stars for a couple years.
Does this mean that Andre Miller and Karl Malone are now Nike atheletes? Weird
 
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Joined Apr 13, 2003
was Dennis Rodman the last player to have his own sig shoe made by converse?

fLiPsIdE
My raps is more exclusives than a pair of new foams - Ali Vegas
 

quik1987

Banned
7,735
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Joined Apr 21, 2001
Does this mean nike acquires the right to use magic, and larry in advertisments? Also akademiks and converse were gonna do a collabo, will it now be a nike/akademiks things? GANGSTA!
 
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Joined Jul 11, 2002
Converse = 3 Lebrons
"See Bob, it's not so much lack of motivation... its just that, I don't care." - Peter Gibbons​
 
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