Nike will also assume Converse’s working capitalliabilities, making the total value of the deal just north of the $300 millionvaluation that Converse was seeking in its IPO. Nike said it intends to keepConverse a completely separate division under the existing management of CEOJack Boys and chairman Mardy Casson.

We believe this is an excellent price for Nike.Compared to spending $90 million for a high school athlete for seven years,getting the Converse brand forever for $305 million is a bargain. Nike ispaying roughly 1X the estimated FY 03 revenues of Converse; however the globalsales in FY 02 were $580 million which ... Log in to view full article.