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NIKE, TREK BICYCLES INK LICENSING AGREEMENT.(Brief Article)
NEW YORK -- Nike ACG is aggressively going after the $600 million cycling apparel and footwear business through a licensing deal with Trek Bicycles, a Waterloo, Wis.-based bicycle company.
During a conference call with reporters Monday, Gordon McFadden, president of Nike ACG, said the deal was 18 months in the making.
This spring, Trek will introduce cycling apparel and footwear under the sneaker giant's ACG label. The 10-year deal gives Trek distribution rights for the new cycling apparel, access to Nike's research and development facilities, and use of its proprietary fabrics such as Dri Fit.
"This is much more than licensing," said John Burke, president of Trek. "We will use the abilities at Nike for research and development, sourcing and tie-ins from a marketing standpoint."
Nike aims to be the dominant player in the cycling apparel and footwear business within the next three to five years, McFadden said. Worldwide retail sales have been increasing by 3 to 5 percent annually, Burke said.
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