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Sumitomo Rubber to Acquire the DUNLOP Brand Overseas Business
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Sumitomo Rubber Industries, Ltd. (hereinafter "Sumitomo Rubber") is pleased to announce that the company reached an agreement today with Sports Direct International plc (based in the U.K.) (hereinafter "SDI"), under which Sumitomo Rubber will acquire the trademark rights of the DUNLOP brand overseas and the sporting goods and licensing businesses of the DUNLOP brand. The purchase price will be USD 137.5 million.
The acquiring entity will be Dunlop International Co. Ltd., a new company jointly established by Sumitomo Rubber and its sports business subsidiary, Dunlop Sports Co. Ltd. (hereinafter "Dunlop Sports").Dunlop International will operate the acquired businesses after completion of this transaction.
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| The DUNLOP Brand Business to Be Transferred from SDI |
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| (1) Trademark Rights of the DUNLOP Brand |
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| [Tires] |
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| Sumitomo Rubber's position will shift from Licensee to Licensor in 86 countries, including those where it currently has a presence, such as Thailand, Indonesia, Brazil and South Africa. |
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| (No impact on the existing tire business at Sumitomo Rubber Group.) |
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| [Sporting goods / Industrial products] |
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| Territory: Throughout the world (except Japan, South Korea and Taiwan, where Sumitomo Rubber Group already owns the trademark rights of the DUNLOP brand). |
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| Products: Expanded to all products except those already owned by other licensees. |
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| (2) Sporting Goods Business of the DUNLOP Brand |
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| Manufacturing and sale of sporting goods (except Japan, South Korea and Taiwan, where Sumitomo Rubber Group already owns the trademark rights of the DUNLOP brand). |
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| (3) Licensing Business of the DUNLOP Brand |
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| Sports apparel, shoes, bags, eyeglasses, watches, umbrellas, etc. (except Japan, South Korea and Taiwan, where Sumitomo Rubber Group already owns the trademark rights of the DUNLOP brand). |
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After the completion of this transaction, Sumitomo Rubber Group, in its Tire Business, will become the owner and licensor of DUNLOP trademark rights globally (except in Europe, North America, India and Australia, etc.). As for the Sports and Industrial Products businesses, the acquisition will enable Sumitomo Rubber to produce and sell DUNLOP branded products globally. In this transaction, Sumitomo Rubber Group will also acquire SDI's sporting goods manufacturing and sales business of DUNLOP brand products as well as its licensing business with respect to the trademark rights of the DUNLOP brand.
As a result of the transaction, Sumitomo Rubber Group will be strongly positioned to enhance the value of the DUNLOP brand on a global basis and to pursue further growth of its sporting goods and licensing businesses as well.
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| Profile of Sports Direct International plc |
| | Head Office | : | Shirebrook, U.K. |
| Sales | : | GBP 2.9billion (FY Apr. 2016) |
| Businesses | : | Retail sales of sporting goods, Licensing of sporting goods brand |
| Number of employees | : | Approximately 29,000 |
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| Profile of Dunlop International Co. Ltd. (Scheduled to be established in 1st half of FY2017) |
| | Head Office | : | Kobe, Japan |
| Capital | : | JPY 6,000million |
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| | Shareholders and Ownership Ratios | : | Sumitomo Rubber 66.7%, Dunlop Sports 33.3% |
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| The above profile may change as a result of the entity's formation and establishment. |
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