Sports Direct International (SDI) has finalized the sale of its rights to the Dunlop brand and the related wholesale and licensing business to affiliates of Sumitomo Rubber Industry (SRI), for $137.5 million in cash. The sum is to be adjusted for net debt and working capital on completion. The agreement was announced near the end of December last year and was widely interpreted as part of SDI's strategy to focus more strongly on upgrading its U.K. retail business. As reported at the time, the Dunlop brand is among the oldest in the industry. It has been endorsed by tennis players such as John McEnroe and Steffi Graf, and is famous for the Dunlop Green Flash shoe. Dunlop has been used by Sports Direct for racquet sports and golf as well as an array of other products, ranging from umbrellas to trolley suitcases. The British retailer and wholesaler said that the Dunlop brand made sales of £42.6 million (€50.3m-$53.3m) for the year until April 24, 2016, with gross assets of £41.8 million (€49.3m-$52.3m) and pre-tax profit of £4.1 million (€4.8m-$5.1m). The Dunlop business owned by SDI operated in the U.K., Europe, North America and Asia, other than Japan, Korea and Taiwan. SRI already had rights to the Dunlop brand in Japan, Korea and Taiwan. The rights formerly held by SDI to the Dunlop brand were formally purchased by Dunlop International, a joint venture between SRI and its sport business subsidiary, Dunlop Sports.

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