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Adidas Unloads Apparel Brand Mitchell & Ness

Photo: Mitchell & Ness website

Adidas Group is cleaning out its closet this quarter.

The German sportswear giant has agreed to sell Mitchell & Ness, a Philadelphia-based apparel and headwear brand with longstanding licensing deals across multiple professional sports leagues including the NBA, NHK, MLB and NFL.

The buyer is a newly formed entity primarily owned by Juggernaut Capital Partners, which said it plans to leverage the brand’s capabilities to grow both organically and through the acquisition of complementary businesses.

Financial terms were not disclosed, but the deal is expected to close in the second quarter of fiscal 2016.

“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,” Herbert Hainer, chief executive officer of Adidas Group, stated Friday.

“We are pleased to partner with industry veteran Kevin Wulff and the existing Mitchell & Ness management team and employees to build and grow upon the success of the Mitchell & Ness brand,” Craig Hille, managing director of Juggernaut Capital Partners, added.

As a result of the transaction, Adidas Group said it expects to record a one-time gain in the low- to mid-double-digital million euro range. The company said it will re-invest the proceeds from the divesture to accelerate initiatives that are part of the company’s “Creating the New” strategy for top- and bottom-line growth.