Sports Direct to sell Dunlop brand to Japan's Sumitomo Rubber Industries
Sports Direct is to sell its Dunlop brand to a Japanese tyre and rubber company.
The retailer announced the £112 million (137.5 million US dollars) sale to Sumitomo Rubber Industries Ltd (SRI) on Tuesday.
Sports Direct said the proceeds from the sale would be used "in its commitment to its third party brand relationships".
In a statement, the company said it did "not currently have the bandwidth to develop and manage international brands simultaneously" and needed to prioritise its core UK businesses and relationships with third party brands.
The Dunlop business has a combined revenue of £42.64 million, gross assets of £41.76 million and profit before tax of £4.06 million, Sports Direct said.
The acquisition will enable SRI to sell and produce Dunlop-branded products around the world, an SRI statement added.
SRI will also acquire Sports Direct's sporting goods manufacturing and sales business of Dunlop brand products, and its licensing business for trademark rights.
Sports Direct will be able to continue using the Dunlop brand for workwear and safetywear for its own retail purposes under a royalty-free licence.
The transaction is conditional upon merger clearance in Germany and the Philippines. It is expected to complete, if merger clearance is granted, before May 31.