Nike, one of the world’s largest sportswear brands, has been expanding its reach through various acquisitions over the years. One such acquisition was Cole Haan, a high-end lifestyle brand known for its fashionable footwear and accessories.
But when did Nike acquire Cole Haan? The answer lies in a strategic move made by Nike in 1988, which paved the way for the brand to enter the fashion industry and diversify its portfolio. Let’s dive deeper into the story of Nike’s acquisition of Cole Haan and how it has impacted both brands.
When Did Nike Acquire Cole Haan?
Nike acquired Cole Haan in 1988. At the time, Cole Haan was a well-established American footwear and accessories brand, known for its high-quality craftsmanship and classic designs. Nike bought the brand as part of its strategy to diversify its product offerings and expand into new markets. Under Nike’s ownership, Cole Haan continued to grow and develop, becoming a leader in the luxury fashion world.
When Did Nike Acquire Cole Haan?
Nike, the multinational corporation that sells footwear, apparel, and accessories, has been acquiring several companies since its inception. One of the most notable acquisitions of the company was the acquisition of Cole Haan. Cole Haan, a high-end American lifestyle brand, was acquired by Nike in 1988. The acquisition was a strategic move by Nike to expand its product line and enter the luxury market.
Overview of Cole Haan
Cole Haan was founded in 1928 by Trafton Cole and Eddie Haan in Chicago, Illinois. The brand started as a men’s footwear brand, but later expanded into women’s footwear, accessories, and outerwear. Cole Haan’s products are known for their quality, craftsmanship, and timeless design. The brand has a strong presence in the United States and is also popular in Asia and Europe.
The Acquisition of Cole Haan by Nike
In 1988, Nike acquired Cole Haan for $95 million. At the time of the acquisition, Cole Haan was a privately held company with annual revenues of around $70 million. The acquisition was a strategic move by Nike to expand its product line and enter the luxury market. Nike saw the potential in Cole Haan’s strong brand and loyal customer base, and believed that the acquisition would help the company to diversify its revenue streams.
The Benefits of the Acquisition
The acquisition of Cole Haan by Nike proved to be a fruitful investment. The brand’s revenue grew significantly under Nike’s ownership, and it became a profitable subsidiary of the company. Nike leveraged its resources and expertise to help Cole Haan expand its product line and reach new markets. The acquisition also helped Nike to diversify its revenue streams and reduce its dependence on athletic footwear.
The Competition: Cole Haan vs. Other Luxury Brands
Cole Haan competes with other luxury brands such as Gucci, Prada, and Louis Vuitton. However, unlike these brands, Cole Haan offers a unique combination of style and comfort. The brand’s products are designed to be functional and comfortable, while also being fashionable. This unique selling point has helped Cole Haan to differentiate itself from its competitors and attract a loyal customer base.
The Impact of the Acquisition on Cole Haan
The Expansion of the Product Line
Under Nike’s ownership, Cole Haan expanded its product line to include more than just footwear. The brand added accessories and outerwear to its product offerings, which helped to increase its revenue and reach new markets. Nike also helped Cole Haan to develop new technologies for its products, such as the Nike Air technology, which was incorporated into Cole Haan’s footwear.
The Geographic Expansion
Another benefit of the acquisition was the geographic expansion of Cole Haan. Nike helped Cole Haan to expand its presence in Asia and Europe, which helped to increase its revenue and reach new customers. Cole Haan now has a strong presence in these regions and continues to expand its global footprint.
The Branding and Marketing Strategy
Nike also helped Cole Haan to revamp its branding and marketing strategy. The brand’s logo was updated, and new advertising campaigns were launched to showcase its products. Nike leveraged its marketing expertise to help Cole Haan to reach new customers and build brand awareness.
The Future of Cole Haan
The Sale of Cole Haan
In 2012, Nike announced that it would sell Cole Haan to Apax Partners for $570 million. The sale was part of Nike’s strategy to focus on its core business of athletic footwear and apparel. While the sale of Cole Haan was a loss for Nike, it was a profitable investment for Apax Partners, who sold the brand to the private equity firm, Genesco, in 2018 for $565 million.
The Rebranding of Cole Haan
After the sale, Cole Haan underwent a rebranding process to position itself as a lifestyle brand. The brand’s logo was updated, and its product offerings were expanded to include more casual and lifestyle products. Cole Haan continues to be a popular brand in the luxury market and has a strong presence in Asia and Europe.
In conclusion, Nike’s acquisition of Cole Haan was a strategic move that helped both companies to grow and expand their product offerings. While Nike eventually sold Cole Haan to focus on its core business, the acquisition proved to be a fruitful investment for the company. Today, Cole Haan continues to be a popular brand in the luxury market, known for its quality, craftsmanship, and timeless design.
Frequently Asked Questions
When Did Nike Acquire Cole Haan?
Nike acquired Cole Haan in 1988. At that time, Cole Haan was a small fashion brand specializing in men’s and women’s dress shoes. The acquisition was part of Nike’s strategy to diversify its product offerings beyond athletic footwear and apparel.
Over the next two decades, Cole Haan expanded its product lines to include handbags, outerwear, and other accessories. The brand also opened its own retail stores and launched e-commerce operations. In 2012, Nike sold Cole Haan to private equity firm Apax Partners for $570 million.
What Was Nike’s Strategy Behind Acquiring Cole Haan?
Nike’s acquisition of Cole Haan was part of its strategy to diversify its product offerings and expand beyond the athletic footwear and apparel market. Cole Haan was a small fashion brand specializing in dress shoes, and Nike saw an opportunity to expand into the broader fashion market.
By acquiring Cole Haan, Nike was able to leverage the brand’s expertise in fashion and design to create new product lines and expand into new markets. The acquisition also helped Nike to diversify its revenue streams and reduce its dependence on the highly competitive athletic footwear and apparel market.
How Did Cole Haan Perform Under Nike’s Ownership?
Cole Haan performed well under Nike’s ownership, growing from a small fashion brand specializing in dress shoes to a full-fledged lifestyle brand offering a wide range of products. During Nike’s ownership, Cole Haan expanded its product lines to include handbags, outerwear, and other accessories, and opened its own retail stores and launched e-commerce operations.
However, in 2012, Nike sold Cole Haan to private equity firm Apax Partners for $570 million, as part of its strategy to focus on its core athletic footwear and apparel business. Under Apax’s ownership, Cole Haan continued to grow and expand, and was eventually sold to another private equity firm in 2016.
Why Did Nike Sell Cole Haan?
Nike sold Cole Haan in 2012 as part of its strategy to focus on its core athletic footwear and apparel business. While Cole Haan was a successful brand under Nike’s ownership, it was not a core business for the company. By selling Cole Haan, Nike was able to focus its resources on its core business and reduce its dependence on the highly competitive fashion market.
Additionally, the sale of Cole Haan allowed Nike to generate significant cash and reinvest it in its core business. The $570 million sale price was a significant return on Nike’s initial investment, and helped to fund new product development and marketing initiatives for its core business.
Who Owns Cole Haan Now?
Cole Haan is currently owned by private equity firm, Advent International. Advent acquired Cole Haan in 2020 from another private equity firm, Apax Partners, in a deal valued at $1.2 billion. Under Advent’s ownership, Cole Haan has continued to expand its product offerings and retail operations, and is focused on growing its e-commerce business.
Despite the challenges posed by the COVID-19 pandemic, Cole Haan has continued to perform well under Advent’s ownership, and the company has announced plans to expand its retail footprint and launch new product lines in the coming years.
In conclusion, Nike’s acquisition of Cole Haan was a strategic move that allowed the company to expand its product offerings and reach new markets. The acquisition took place in 1988, and since then, Cole Haan has become a well-known brand in the fashion industry, offering a range of high-quality footwear, accessories, and apparel.
With Nike’s backing, Cole Haan has been able to continue innovating and pushing the boundaries of fashion, while also maintaining its commitment to quality and craftsmanship. This has helped the brand to stay relevant and popular with consumers around the world.
Overall, Nike’s acquisition of Cole Haan has been a great success, and it is a testament to the power of strategic partnerships in the business world. By joining forces, these two iconic brands have been able to achieve even greater success and establish themselves as leaders in the fashion and footwear industries.
