Nike, one of the biggest names in the athletic apparel and footwear industry, has been making strategic acquisitions over the years to expand its product offerings. One of these acquisitions was the purchase of Cole Haan, a luxury footwear and accessories brand that has been around since the 1920s. But when did Nike buy Cole Haan? Let’s take a closer look at this acquisition and its impact on both companies.
In this article, we’ll explore the timeline of Nike’s acquisition of Cole Haan, the reasons behind the purchase, and how the two brands have since evolved. Whether you’re a fan of Nike, Cole Haan, or just interested in the world of corporate mergers and acquisitions, this is a story that’s worth delving into. So, without further ado, let’s get started!
Nike bought Cole Haan in 1988 for $95 million. At the time, Cole Haan was a well-established brand known for its stylish and comfortable footwear. Nike saw an opportunity to expand its product line beyond athletic shoes and leverage Cole Haan’s expertise in leather goods and accessories. Nike eventually sold Cole Haan in 2012 to focus on its core business of athletic footwear and apparel.
When Did Nike Buy Cole Haan?
Nike, the American multinational corporation, is known for its athletic and performance-based footwear, apparel, and equipment. Over the years, it has expanded its reach through acquisitions of other companies, one of which was Cole Haan. Cole Haan is a premium footwear and accessories brand that was acquired by Nike in 1988. In this article, we’ll take a closer look at the history of Cole Haan and how Nike’s acquisition has impacted the brand.
The History of Cole Haan
Cole Haan was founded in 1928 by Trafton Cole and Eddie Haan in Chicago. The company started as a men’s footwear brand, but it soon expanded its product line to include women’s shoes, handbags, and accessories. Cole Haan became known for its high-quality craftsmanship and timeless designs, which helped it establish a loyal customer base.
Over the years, Cole Haan went through a few ownership changes. In 1975, the company was acquired by Halliburton Associates, a holding company that also owned the sporting goods brand Bauer. However, Halliburton struggled to manage both brands and eventually sold Cole Haan to a group of investors led by George Denney in 1982.
Nike’s Acquisition of Cole Haan
In 1988, Nike purchased Cole Haan for $80 million. At the time, Nike was looking to expand its reach beyond athletic footwear and apparel. Cole Haan was seen as a strategic acquisition that would help Nike enter the luxury footwear market. Nike also saw the potential for Cole Haan to become a lifestyle brand, which would appeal to a broader consumer base.
Under Nike’s ownership, Cole Haan continued to operate as a standalone brand, with its own design and merchandising teams. However, Nike provided Cole Haan with access to its manufacturing facilities, which helped the brand improve its production processes and expand its product line. Cole Haan also benefited from Nike’s marketing expertise, which helped to raise the brand’s profile.
The Impact of Nike’s Acquisition
Nike’s acquisition of Cole Haan proved to be a smart move. The brand continued to grow under Nike’s ownership, with sales increasing from $38 million in 1988 to $535 million in 2012. Cole Haan also expanded its product line to include outerwear, accessories, and handbags. The brand became known for its innovative designs and use of technology, such as Nike’s Air technology in its footwear.
In 2012, Nike announced that it was selling Cole Haan to private equity firm Apax Partners for $570 million. Nike’s decision to sell Cole Haan was seen as a strategic move to focus on its core business of athletic footwear and apparel. However, the impact of Nike’s ownership can still be seen in the success of Cole Haan today.
The Benefits of Nike’s Acquisition
Nike’s acquisition of Cole Haan provided several benefits for both companies. For Nike, it allowed the company to diversify its product line and enter the luxury footwear market. Nike was also able to provide Cole Haan with access to its manufacturing facilities and marketing expertise, which helped the brand grow.
For Cole Haan, the acquisition provided access to resources that it wouldn’t have had as a standalone brand. Cole Haan was able to improve its production processes and expand its product line. The brand also benefited from Nike’s marketing expertise, which helped to raise its profile and attract new customers.
Cole Haan vs. Other Premium Footwear Brands
Since Nike’s acquisition, Cole Haan has established itself as a leading premium footwear brand, alongside competitors like Allen Edmonds, Johnston & Murphy, and Salvatore Ferragamo. Cole Haan’s success can be attributed to its innovative designs, use of technology, and commitment to quality craftsmanship.
Compared to other premium footwear brands, Cole Haan offers a unique blend of style, comfort, and performance. The brand’s use of Nike’s Air technology in its footwear sets it apart from competitors and appeals to consumers who value both style and function.
Conclusion
Nike’s acquisition of Cole Haan in 1988 was a strategic move that helped both companies grow. Nike was able to diversify its product line and enter the luxury footwear market, while Cole Haan benefited from Nike’s manufacturing and marketing expertise. Today, Cole Haan is a leading premium footwear and accessories brand that continues to innovate and push boundaries. Its success is a testament to the impact that Nike’s ownership had on the brand.
Frequently Asked Questions
When did Nike buy Cole Haan?
In 1988, Nike Inc. acquired Cole Haan as part of its expansion strategy. The acquisition was a significant move for Nike, as it allowed the company to diversify its product line while extending its reach beyond the athletic footwear and apparel markets.
At the time of the acquisition, Cole Haan was a well-established American brand that specialized in luxury footwear, accessories, and outerwear. The company’s reputation for quality and innovation made it an attractive target for Nike, which was looking to expand its business into new areas. With the acquisition of Cole Haan, Nike was able to tap into the growing demand for high-end fashion products, while leveraging its own expertise in design, marketing, and distribution.
Why did Nike sell Cole Haan?
In 2012, Nike decided to sell Cole Haan to focus on its core business of athletic footwear and apparel. The decision was part of a broader effort by Nike to streamline its operations and improve profitability.
While Cole Haan had been a successful acquisition for Nike, the company felt that it was no longer a strategic fit for its business. By divesting Cole Haan, Nike was able to free up resources and capital that it could use to invest in its core athletic brands, such as Nike and Jordan.
The sale of Cole Haan was completed in 2013, with the company being purchased by Apax Partners for $570 million. Since then, Cole Haan has continued to operate as an independent brand, focused on creating high-quality footwear and accessories for the modern consumer.
Who owns Cole Haan now?
As of 2021, Cole Haan is a public company that is listed on the NASDAQ stock exchange. The company went public in February 2020, with an initial public offering (IPO) that valued the company at $8.2 billion.
Since its IPO, Cole Haan has continued to grow and expand its business, with a focus on digital sales and direct-to-consumer channels. The company is currently led by CEO Jack Boys, who has a background in retail and fashion.
While Cole Haan is no longer owned by Nike, the two companies continue to have a close relationship. Nike remains a key supplier of footwear and other products to Cole Haan, and the two companies collaborate on various marketing and promotional initiatives.
What is Cole Haan known for?
Cole Haan is known for its high-quality footwear and accessories, which are designed for the modern consumer. The company’s products are known for their combination of style, comfort, and performance, making them a popular choice for both casual and formal occasions.
In particular, Cole Haan is known for its use of innovative technologies and materials, such as its Grand.OS technology, which provides a lightweight and flexible sole for improved comfort and support. The company also offers a range of accessories, including bags, wallets, and belts, which are designed to complement its footwear products.
Overall, Cole Haan is known for its commitment to quality and innovation, which has helped it to establish a strong reputation in the fashion industry.
Where can I buy Cole Haan products?
Cole Haan products can be purchased from a variety of retailers, including department stores, specialty shops, and online retailers. The company also operates its own retail stores and e-commerce website, where customers can purchase its products directly.
In addition, Cole Haan products are available through various partnerships and collaborations, such as its ongoing relationship with Nike. The company also offers a range of customization options for its footwear products, allowing customers to personalize their shoes with different colors, materials, and designs.
Overall, Cole Haan products are widely available and can be found in many different locations, making them accessible to a broad range of consumers.
In conclusion, the acquisition of Cole Haan by Nike took place back in 1988. This move was a strategic one for Nike, as it allowed them to expand their product line beyond just athletic footwear and apparel. With the addition of Cole Haan’s stylish and sophisticated line of shoes and accessories, Nike was able to tap into a new market and appeal to a wider range of consumers.
Since the acquisition, Cole Haan has continued to thrive under Nike’s ownership, with a focus on innovation and design that has earned the brand a loyal following. By combining Nike’s expertise in performance with Cole Haan’s expertise in style, the brand has been able to create products that are both fashionable and functional.
Overall, the acquisition of Cole Haan by Nike was a bold move that has paid off for both brands. It allowed Nike to diversify its product offerings and appeal to a wider range of consumers, while also giving Cole Haan the resources and support it needed to continue growing and innovating. Today, Cole Haan remains a beloved brand among fashion-forward consumers, and its success is a testament to the power of strategic acquisitions in the business world.
