Nike to buy Converse for $305 million

BEAVERTON, Ore. (July 10)—Nike Inc. has reached an agreement to buy Converse Inc. for about $305 million plus the assumption of certain liabilities as the footwear giant looks to build its business through non-Nike brands. Nike said buying Converse matches its strategy of identifying strong brands with superior management teams where Nike can directly assist in the company's growth. Converse—known for its canvas Chuck Taylor All Star shoes—was bought out of Chapter 11 protection in 2001 by a group of turnaround specialists. Since then, the group has worked to re-establish the Converse brand, which posted 2002 sales of $205 million but was on target to hit $300 million this year. The deal is subject to antitrust review. Nike posted total revenue of $10.7 billion for its fiscal year, ended May 31.