Polo buys footwear unit

Polo Ralph Lauren Corp. is purchasing its Ralph Lauren Footwear Co. Inc. unit from Reebok International Ltd. for $110 million (GBP 60 million). The footwear company, which has been a Polo Ralph Lauren licensee since 1996, is being bought in an all-cash deal. It is expected to close at the end of June at the latest, according to the American City Business Journals.

The company is buying the footwear unit in order to increase control over the design and production of its brand items. Last year Polo Ralph Lauren Corp. bought its children's clothing licensee for $230 million. Reebok's chief executive responded by saying that the sale would allow Reebok to focus on its core business.