adidas is parting ways with Mitchell & Ness.
According to the Wall Street Journal, the German-based performance brand announced on Friday it will sell the U.S. sportswear company after owning it for nine years. Though the details of the deal were not fully revealed, adidas officials did say Mitchell & Ness will be sold to a newly formed company owned by U.S. equity firm Juggernaut Capital Partners. The sale amount is expected to be in the “low to medium double-digit million euro range."
This move marks adidas’ latest effort to continue its increasing revenue, as officials say they will reinvest the proceeds into its “Creating the New” business strategy, which is intended to raise 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,” adidas Chief Executive Herbert Hainer said in a statement.
Mitchell & Ness is one of the oldest sportswear companies in the nation, and currently holds license agreements with the top American sports leagues, including the NBA, NFL, and MLB. The company has also had its hands in various high-profile collaborations, which included brands like OVO, Just Don, and Reigning Champ.
After posting its most lucrative quarter in history last month, adidas announced it would also sell its golf brands in order to focus on its performance gear. Shortly after, adidas also announced its 10-year, $420 million contract with Chelsea FC would be terminated.
