Sports Direct sells Dunlop brand to Japan’s Sumitomo

29-Dec-2016 Intellasia | Telegraph | 6:00 AM Print This Post

Japan’s Sumitomo Rubber Industries for $137.5m (GBP 112m) in a bid to become “the Selfridges of sports retail”.

The company said that the sale was part of its strategy to focus on its core UK business and develop relationships with third party brands, rather than owning them outright.

It said the senior management team didn’t have the “bandwidth” to both develop and manage international labels such as Dunlop, which makes equipment for golf, tennis, squash and badminton

Sports Direct is selling the rights to tennis brand Dunlop to Japan’s Sumitomo Rubber Industries for $137.5m (GBP 112m) in a bid to become “the Selfridges of sports retail”.

The company said that the sale was part of its strategy to focus on its core UK business and develop relationships with third party brands, rather than owning them outright.

It said the senior management team didn’t have the “bandwidth” to both develop and manage international labels such as Dunlop, which makes equipment for golf, tennis, squash and badminton.

The acquisition marks Sumitomo’s second purchase of a UK company in a month. A few weeks ago, Sumitomo snapped up Dublin-based banana producer Fyffes for GBP 633m.

The weak pound has made British companies attractive acquisition targets for overseas suitors. In August, Japan’s SoftBank took advantage of the currency’s devaluation by buying Britain’s biggest technology company, ARM Holdings, for GBP 24.3bn.

The Dunlop transaction is expected to complete before the end of May next year and is subject to clearance from competition authorities in Germany and the Philippines.

http://www.telegraph.co.uk/business/2016/12/27/sports-direct-sells-dunlop-brand-japans-sumitomo/

 


Category: Japan

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