Why Salomon Safety is selling its brand to Nike

A brand synonymous with safety has been sold to Nike.

Salomon has acquired a majority stake in the US-based brand from a Japanese company called BAPE for $3 billion, the New York Times reported.

Salomons new brand, Salomon, will focus on a new line of safety-oriented shoes for men, and will include the shoes and accessories the company has sold to Adidas, Under Armour, Underwriters Laboratories and others.

Salogalts name will not be changing, the Times reported, citing people familiar with the deal.

Salem, New Hampshire-based Salomon shares are up almost 1.4% in premarket trading, the Nasdaq Composite Index rose 1.1%.

Shares of BAPE rose 1% in after-hours trading.

Nike said it was in talks with Salomon to explore a partnership.

The acquisition is the latest to benefit Nike, which is increasingly focused on attracting younger consumers.

In May, Nike announced a partnership with the US Navy to produce safety-conscious shoes for US sailors.

The US Army is also trying to sell off its military footwear business to help finance its planned $4.5 trillion cost-saving overhaul.

Naked has made $1.8 billion in revenue since its inception in 2008, according to its website.

Salombro, the company behind the iconic shoes, declined to comment on the Salomon deal.