Adidas offloads Mitchell & Ness

Germany’s Adidas Group has announced that it has agreed to sell its American sportswear company Mitchell & Ness.

The buyer is a newly formed entity primarily owned by US private equity firm Juggernaut Capital Partners. The transaction, which is subject to customary closing conditions, is expected to close in Q2 2016.

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

As a result of the transaction, the Adidas Group will record a one-time positive P&L impact at the time of closing. 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.

"Mitchell & Ness is a strong lifestyle brand that is well known for its authentic headwear and apparel craftsmanship. However, our focus is more on performance sport and operating a brand portfolio with a clear agenda to unleash the potential of athletes and inspire consumers to live active lives. 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," said Herbert Hainer, CEO of the Adidas Group.