Adidas has entered into a definitive agreement to sell its Mitchell & Ness business to a newly-formed company owned by Juggernaut Capital Partners. Adidas said the sale of the Philadelphia-based apparel brand will allow the group to focus more aggressively on its core brands.
Mitchell & Ness is best known for its nostalgia headwear and apparel, which Adidas said is not core to its current strategy. Mitchell & Ness has longstanding licensing agreements with various professional sports leagues including the NBA, NFL, NHL and MLB. Kevin Wulff, an industry veteran who most recently led Asics America, has been hired to help run the operation.
Juggernaut Capital Partners (JCP), headquartered in Washington, DC, is a private equity firm specializing in middle-market companies, with more than $725 million in committed capital. JCP provides capital for growth, recapitalizations, acquisitions and buyouts, mainly in the consumer and business services sectors.
The amount of the transaction is expected to be in the low-to-mid-double-digit million euro range, resulting in a positive provision in Adidas' accounts. The transaction is expected to close before the end of current quarter. Robert W. Baird & Co. acted as exclusive financial adviser to Adidas while Ropes & Gray LLP served as legal counsel. Symphony Investment Partners acted as advisers to the buyer and Robinson Bradshaw served as legal adviser.
As previously reported, the Adidas Group has already decided to divest most of the assets of its TaylorMade-Adidas Golf subsidiary.
