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US sportswear giant Nike is to buy rival Umbro in a £285 million deal, it has been revealed.

Confirmation of the takeover comes after Umbro, the sponsor of the England football team, announced last week that it had received an approach from an unnamed suitor.

Under the terms of the deal Umbro investors will receive 193.06p for each of their shares, with the agreement valuing the company at around 195p-a-share.

Nike, which announced news of the deal, said that the acquisition would allow it to "significantly expand" its "global leadership" in football, which it says is an area of key growth for the company.

In addition to providing the England football team with kit, Umbro also supplies gear and playing strips for six Premier League clubs – including Everton, West Ham and Wigan.

News of the takeover deal follows a difficult period for Umbro, which has struggled to maintain sales in the wake of last year's football World Cup. Last month the company issued a profit warning after poor sales of England replica shirts.

But Nike insisted today that Umbro was a brand with a "powerful heritage and deep experience in the world's most popular sport".

"With its close links to the Football Association and the England team, Umbro's future is even stronger than its past," explained Nike president and chief executive Mark Parker.

"This dynamic alignment of Umbro and Nike, with our complementary strengths and numerous ways to segment and grow the market, will lead the game at every level throughout the world," he added.

Umbro, whose board has said that it will unanimously support Nike's offer, described the deal as an "excellent" one that would provide "great value" for its shareholders.

"We will be a stronger and better business as part of Nike and this deal will allow us to accelerate our existing growth strategy by leveraging Nike's global resources and expertise," said Umbro chief executive Steve Makin.

"We look forward to taking Umbro to new levels with Nike's support."