Nike is one of the most recognizable brands in the world, known for its iconic “swoosh” logo and high-quality athletic gear. However, the company has also made some strategic business moves over the years, including the sale of one of its subsidiary brands, Cole Haan.
Many people may not be aware of when Nike sold Cole Haan or why they made this decision. In this article, we’ll delve into the details of this transaction and explore the reasons behind Nike’s choice to part ways with this popular fashion label.
When Did Nike Sell Cole Haan?
Nike sold Cole Haan in 2012 to Apax Partners for $570 million. The decision was made to focus on Nike’s core brand and divest from other businesses. Cole Haan was acquired by a group of investors in 2016 and is now a privately held company.
When Did Nike Sell Cole Haan?
Nike, one of the leading sportswear companies in the world, has been expanding its brand for decades. One of its notable acquisitions was Cole Haan, a fashion company that specializes in footwear, accessories, and outerwear. However, Nike recently sold Cole Haan to focus more on its core business. Let’s take a closer look at the timeline of the sale and the reasons behind it.
The Acquisition of Cole Haan
In 1988, Nike acquired Cole Haan for $80 million, with the aim of expanding its brand into the high-end fashion market. At the time, Cole Haan was a well-established brand that had been in business for over 60 years. Nike saw an opportunity to leverage Cole Haan’s expertise in footwear and accessories to create a new market for its products.
Under Nike’s ownership, Cole Haan continued to grow as a brand, expanding its product line and opening new stores. The company became known for its high-quality products and innovative designs, attracting a loyal customer base.
The Sale of Cole Haan
In 2012, Nike announced that it would be selling Cole Haan to Apax Partners, a private equity firm. The sale was completed in early 2013 for $570 million, more than seven times the amount Nike had paid for the company 25 years earlier.
The decision to sell Cole Haan was part of Nike’s strategy to refocus on its core business of sportswear and footwear. While Cole Haan had been a successful acquisition, it was not seen as a key part of Nike’s long-term growth plans. By selling the company, Nike was able to free up resources and focus on its core strengths.
The Benefits of Selling Cole Haan
By selling Cole Haan, Nike was able to focus on its core business and invest in new growth opportunities. The sale allowed Nike to streamline its operations and reduce its exposure to the fashion industry, which can be volatile and unpredictable.
In addition, the sale of Cole Haan generated significant revenue for Nike. The $570 million sale price represented a substantial return on Nike’s initial investment, and the company was able to reinvest the proceeds into its core business.
The Downsides of Selling Cole Haan
While the sale of Cole Haan had many benefits, it also had some downsides. One of the biggest challenges was the loss of a successful brand that had been a part of Nike’s portfolio for decades. Cole Haan had a loyal customer base and a strong reputation for quality and innovation, and the sale of the company meant that Nike would no longer have access to those benefits.
In addition, the sale of Cole Haan meant that Nike would be more narrowly focused on its core business. While this was seen as a positive by many investors, it also meant that Nike would be more exposed to the risks and challenges of the sportswear industry.
The Future of Nike
Despite the sale of Cole Haan, Nike remains one of the most successful and innovative sportswear companies in the world. The company continues to invest in new products and technologies, and has a strong brand that is recognized around the globe.
Moving forward, Nike will likely continue to focus on its core business of sportswear and footwear, while exploring new growth opportunities in related industries. While the sale of Cole Haan was a significant event in Nike’s history, it was just one step in the company’s ongoing evolution and growth.
In conclusion, Nike’s sale of Cole Haan was a strategic move that allowed the company to focus on its core business and generate significant revenue. While there were some downsides to the sale, Nike remains one of the most successful and innovative sportswear companies in the world, with a bright future ahead.
Frequently Asked Questions
When did Nike sell Cole Haan?
In November 2012, Nike sold Cole Haan to private equity firm Apax Partners for $570 million. This was a strategic decision for Nike, as the company wanted to focus on its core athletic brands such as Nike and Jordan. Cole Haan, which specializes in dress and casual footwear and accessories, did not fit into Nike’s long-term plans.
After the sale, Cole Haan became its own independent company and continued to operate under its own brand name. The sale allowed Nike to focus on its core businesses and invest more resources into research and development for its athletic brands.
Why did Nike sell Cole Haan?
Nike sold Cole Haan to focus on its core athletic brands such as Nike and Jordan. The decision was made to streamline the company’s operations and invest more resources into research and development for its core brands. Nike also wanted to improve its profitability and financial performance, which had been impacted by the underperformance of some of its non-athletic brands.
Cole Haan had been struggling to grow its business in recent years, and the sale allowed the company to become an independent entity and focus on its own growth strategy. Nike believed that this move would benefit both companies in the long run.
How much did Nike sell Cole Haan for?
Nike sold Cole Haan to private equity firm Apax Partners for $570 million in November 2012. This was a strategic decision for Nike, as the company wanted to focus on its core athletic brands such as Nike and Jordan. Cole Haan, which specializes in dress and casual footwear and accessories, did not fit into Nike’s long-term plans.
The sale allowed Cole Haan to become an independent company and focus on its own growth strategy. Nike used the proceeds from the sale to invest in research and development for its core brands.
What happened to Cole Haan after Nike sold it?
After Nike sold Cole Haan to private equity firm Apax Partners for $570 million in November 2012, Cole Haan became an independent company and continued to operate under its own brand name. The sale allowed Cole Haan to focus on its own growth strategy and expand its business in new markets.
Since the sale, Cole Haan has experienced significant growth and success. The company has expanded its product line to include new categories such as men’s and women’s clothing, handbags, and accessories. It has also opened new stores in key markets around the world, including Asia and Europe.
Is Nike still involved with Cole Haan?
No, Nike is no longer involved with Cole Haan. In November 2012, Nike sold Cole Haan to private equity firm Apax Partners for $570 million. This was a strategic decision for Nike, as the company wanted to focus on its core athletic brands such as Nike and Jordan.
After the sale, Cole Haan became an independent company and continued to operate under its own brand name. Nike no longer has any ownership or control over the company. Cole Haan is now focused on expanding its business and brand presence in new markets around the world.
In conclusion, Nike sold Cole Haan in 2013 as part of its strategic plan to focus on its core business and streamline its brand portfolio. The decision to divest Cole Haan was not an easy one, but Nike recognized the potential for growth and profitability by narrowing its focus on athletic footwear and apparel.
Since the sale, Cole Haan has continued to thrive under new ownership and has expanded its product offerings to include a wider range of lifestyle and fashion-oriented footwear and accessories. While Nike may no longer have a direct stake in the brand, the legacy of Cole Haan lives on as a testament to the power of strategic decision-making and the importance of staying true to your core values.
Ultimately, the sale of Cole Haan was a pivotal moment in Nike’s history, as it marked a shift towards greater focus and discipline in its business operations. As Nike continues to evolve and adapt to changing market conditions, it is clear that the lessons learned from the sale of Cole Haan will remain an important part of the company’s legacy for years to come.
