British football kit manufacturer Umbro is paying up to £7 million for a 25 percent stake in Team & Sports, which distributes its products under licence in China, Hong Kong and Taiwan. The terms are £2.6 million up front and £1.38 million next year, with the rest due if Team & Sports achieves sales targets to 2010. The funds are reportedly part of a £25 million compensation package the company received after English Premier League leaders, Chelsea FC, scrapped a sponsorship deal early.
In a stock market statement, Umbro chief executive Peter McGuigan said China was one of the group's fastest-growing markets. "We have worked with Team & Sports for over 15 years, they a have great team and an in-depth understanding of their market. We are confident that, over the next few years, our combined efforts will deliver sales growth propelling China into one of our largest distribution territories."
In a stock market statement, Umbro chief executive Peter McGuigan said China was one of the group's fastest-growing markets. "We have worked with Team & Sports for over 15 years, they a have great team and an in-depth understanding of their market. We are confident that, over the next few years, our combined efforts will deliver sales growth propelling China into one of our largest distribution territories."