UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 9, 2003
NIKE, INC.
(Exact Name of Registrant as Specified in Charter)
Oregon 1-10635 93-0584541
____________ ____________ ____________
(State of (Commission (I.R.S.Employer
Incorporation) File Number) Identification No.)
One Bowerman Drive
Beaverton, Oregon 97005-6453
(Address of Principal Executive Offices)
__________________________
(503) 671-6453
(Registrant's telephone number, including area code)
___________________________
Item 5. Other Events
Today NIKE, Inc. released the following press release:
FOR IMMEDIATE RELEASE
MEDIA CONTACT: INVESTOR CONTACT:
Joani Komlos Pamela Catlett
503.671.2013 503.671.4589
NIKE, INC. TO ACQUIRE CONVERSE, INC.
Beaverton, OR (July 09, 2003) -- NIKE, Inc. (NYSE:NKE) announced today
it has entered into a definitive agreement to acquire Converse, Inc.,
the globally recognized footwear brand with nearly a century of sports
heritage. The total price to be paid for 100 percent of the equity
shares is approximately $305 million plus the assumption of certain
working capital liabilities at the time of the transaction's
consummation.
"Converse is one of the strongest footwear brands in the world with
great heritage and a long history of success," Tom Clarke, Nike's
President of New Business Ventures, said. "Converse's management has
done an excellent job of reestablishing this beloved brand with
consumers and we look forward to supporting them as they continue to
implement their growth strategy. Converse shares our passion for sports
and, together, Nike and Converse will generate even greater access to a
dynamic consumer base."*
Jack Boys, Chief Executive Officer of Converse, said, "Over the past two
years, we have rebuilt and reinvigorated the Converse brand to it's
long-standing position as America's Original Sports Company, but our job
is not done. Our core business in heritage products like Chuck
Taylor(registered) All Star(registered) and the Jack Purcell(registered)
combined with our traditional performance footwear offerings is a great
foundation upon which we plan to build and grow. Our partnership with
Nike creates significant opportunity for us to execute our vision for
building a leading global sports footwear and apparel brand by growing
our core business and expanding our product offerings into other sports
performance and lifestyle categories."*
Clarke said, "The Nike brand has always been rooted in performance and
innovation. We enjoy a broad and deep connection with consumers around
the world which has generated over $9.5 billion in annual revenue under
the Nike brand. Our strategy for growing through non-Nike brands is to
identify strong brands with superior management teams where Nike can
directly assist in the company's growth. Converse certainly meets our
criteria and its brand equity offers potential to drive even greater
revenue and earnings performance. We believe the addition of Converse
to our increasingly diverse Nike, Inc. portfolio will contribute to
creating long-term shareholder value."*
Consummation of the agreement is subject to regulatory review, including
U.S. government review under the Hart-Scott-Rodino Premerger
Notification Act.
NIKE, Inc., based in Beaverton, Oregon, is the world's leading designer
and marketer of authentic athletic footwear, apparel, equipment and
accessories for a wide variety of sports and fitness activities. For
fiscal year 2003 ended May 31, NIKE, Inc. revenue totaled $10.7 billion.
Wholly owned Nike subsidiaries include Cole Haan(registered), which
markets a line of high-quality men's and women's footwear, accessories
and outerwear; Hurley International LLC, which markets action sports and
teen lifestyle apparel; and Bauer NIKE Hockey Inc., which manufactures
and markets hockey equipment.
Converse, Inc. based in North Andover, Massachusetts, is a designer,
distributor, and marketer of high performance and casual athletic
footwear and apparel. Founded in 1908, Converse has created such
legendary shoes as the Chuck Taylor(registered) All Star(registered),
the Jack Purcell(registered), One Star(registered), and other authentic
heritage products. Converse sells its products in over 12,000 athletic
specialty, sporting goods, specialty, department and national chain
stores across the United States and Canada, and through 42 licensees in
over 100 countries. Full-year 2002 Converse, Inc. revenue totaled $205
million. Worldwide wholesale sales of all products bearing the Converse
brand, generated by Converse, Inc. and its licensing partners and
affiliates (excluding Japan), were approximately $390 million for 2002.
The marked paragraphs contain forward-looking statements that involve
risks and uncertainties that could cause actual results to differ
materially. These risks and uncertainties are detailed from time to
time in reports filed by NIKE with the S.E.C., including Forms 8-K, 10-
Q, and 10-K.
# # #
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
NIKE, Inc.
(Registrant)
Date: July 9, 2003
/s/ Donald W. Blair
____________________
By: Donald W. Blair
Chief Financial Officer