Adidas sells U.S. apparel firm Mitchell & Ness

The Adidas group announced today that it has entered into a definitive agreement to sell its Mitchell & Ness business to a newly formed entity primarily owned by Juggernaut Capital Partners. The new entity plans to leverage the capabilities of the platform to grow both organically and through the acquisition of complementary businesses. The transaction, which is subject to customary closing conditions, is expected to close in Q2 2016. 

The amount, which is expected to be in the low- to mid-double-digit million euro range, will be reported in other operating income as part of the group’s net income from continuing operations.

The German group said in a statement on Friday it would re-invest the proceeds of the sale into its "Creating the New" strategy.

"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," Adidas said in a statement on Friday.