German sporting giant adidas is to sell its US sportswear brand Mitchell &
Ness. The company is reducing its portfolio in order to focus on its core
brands, however financial terms of the deal were not disclosed.
Mitchell & Ness will now be owned by US private-equity firm Juggernaut
Capital Partners, as adidas will use the funds of the sale to invest 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,” said CEO Herbert Hainer.
Mitchell & Ness holds licenses from major American sports leagues such as
the National Basketball Association and the National Football League to
produce apparel, including team caps.
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.
Adidas recently announced plans to unload most of its loss-making golf
business, focusing on the athletic footwear and apparel market.
The sale is expected to be finalised in the second quarter.
Image:Michell & Ness