The Adidas Group has entered into a definitive agreement to sell its Mitchell & Ness business to a newly formed entity primarily owned by Juggernaut Capital Partners, a private equity firm. Kevin Wulff, the former president and CEO of Asics America Group, has been recruited to help manage Mitchell & Ness, a lifestyle brand.
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.
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, expected to be in the low -to-mid-double-digit million euro range, will be resorted in other operating income as part of the Group’s net income from continuing operations. The Group has decided to re-invest proceeds from the divestiture to accelerate initiatives that are part of the company’s ‘Creating the New’ strategic business plan and which are aimed at further strengthening the platform for ongoing top- and-bottom-line growth.
Headquartered in Philadelphia, Mitchell & Ness, is a global platform in nostalgia headwear and apparel with longstanding licensing agreements across multiple professional sports leaguers including the NBA, NHL, MLB and NFL.