Adidas to Sell U.S. Brand Mitchell & Ness
May 27 2016 - 6:30AM
Dow Jones News
FRANKFURT—Adidas AG said on Friday that it would sell U.S.
sportswear brand Mitchell & Ness as part of its strategy of
focusing on its core brands.
Adidas, the world's second-largest sportswear firm after Nike
Inc., agreed to sell the unit to a company owned by U.S.
private-equity firm Juggernaut Capital Partners for a low to middle
double-digit million euro sum, it said. Adidas will reinvest the
money in its "Creating the New" strategic plan aimed at increasing
turnover and profit.
"Nostalgia headwear and apparel is not core to this strategy and
the sale of Mitchell & Ness will allow us to reduce complexity
and pursue our target consumer more aggressively with our core
brands," Chief Executive Herbert Hainer said.
Philadelphia-based Mitchell & Ness holds licenses from major
American sports leagues such as the National Basketball Association
and the National Football League to produce apparel. It is known
especially for its team caps.
Although Mitchell & Ness is a strong lifestyle brand, Adidas
said its own focus lies more with performance sport.
Adidas said earlier this month it was seeking to sell parts of
its struggling golf business after years of faltering sales,
including the Taylormade-Adidas Golf, Adams, and Ashworth brands
that mostly produce golf hardware.
It also announced recently the early termination of a
partnership contract with soccer team Chelsea, resulting in an
extraordinary payment and an increased profit outlook for the year.
Adidas said the termination reflected its sponsorship strategy,
which entails working with fewer teams.
The Mitchell & Ness transaction is expected to close in the
current quarter, Adidas said.
(END) Dow Jones Newswires
May 27, 2016 06:15 ET (10:15 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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