Apax Partners, a global private equity firm finalized its acquisition of Cole Haan from NIKE, Inc this
past Friday in a press release. The acquisition was previously announced, but on its completion, Apax
Partners and Cole Haan also named the new CEO of Cole Haan: Jack Boys, the former CEO of Converse,
Inc. and The North Face. Cole Haan was founded in 1928 and sold to Nike in 1988.
Jack Boys will begin his tenure as CEO of Cole Haan, effective immediately. Boys was quoted on his new
post: “I am thrilled to work with the Cole Haan team to build on the brand’s incredible legacy.
From the time Trafton Cole and Eddie Haan launched the business 85 years ago, Cole Haan has established a history of outstanding craftsmanship, innovative design and exceptional quality. Now, as an independent company, we have an exciting opportunity to expand upon the Cole Haan tradition, deliver new, consumer-driven products and grow as a lifestyle brand with a global footprint.” In his statement, Boys noted the Cole Haan values of craftsmanship, innovation and style. Boys, a known innovator, has proven turnaround experience and should breathe new life back into the legacy brand.
While owned by Nike, Cole Haan and Nike collaborated on a line of Cole Haan shoes with Nike Air technology. Nike bought Cole Haan for $88 million in 1988 and has sold the company to Apax Partners for $570 million. According to the NY Times in November, Nike chose to sell the company to focus on complementary investments. Nike CEO Mark Parker stated, “The decision to divest of Cole Haan allows us to sharpen our focus on opportunities with the highest potential for strong returns, and to make sure the brands within the Nike portfolio are the most complementary to the Nike Brand.” This divestiture is an interesting one and came in tandem with the sale of Umbro. Nike has chosen to focus on its strongest businesses, which seems wise, especially noting that Cole Haan only made up 2% of Nike’s total sales last year.
Apax Partners outbid other private equity firms for the company and is pleased with the transaction. Apax has a long history of investing and owning retail and fashion companies, including Tommy Hilfiger, Calvin Klein, Tommy Bahama and rue21. Alex Pellegrini, a Partner in Apax’s Retail & Consumer team, on the sale and CEO Boys said, “We see tremendous opportunities for Cole Haan and are excited to partner with Jack Boys to take the business to the next level. Jack has an extraordinary track record of successfully developing and growing global lifestyle brands. His leadership and experience will be invaluable as we focus on unlocking the potential of this brand both in the U.S. and abroad.” The new role at Cole Haan should prove to be a successful next step for CEO Jack Boys. Hopefully the acquisition and global expansion of Cole Haan will provide Apax Partners with high returns in coming years.
Lauren Seely