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Adidas sells CCM ice hockey brand for $110 million to Birch Hill

Birch Hill will pay most of purchase price for CCM in cash and rest in form of secured note: Adidas

Reuters  |  Frankfurt 

German sportswear group Adidas has agreed to sell its CCM ice hockey brand to private equity firm for $110 million, it said on Thursday, as it focuses more strongly on its core Adidas and Reebok brands.

Adidas has shaken up its business in the United States and shed to regain ground lost to Nike, outpacing its rival's sales growth in key markets this year.

It sold its golf business this year, striking a deal in May to sell brands TaylorMade, Adams Golf and Ashworth to private equity firm for $425 million.

"The divestiture of CCM further reflects the commitment to our 'Creating the New' strategy, with complete focus on building on our strength in footwear and apparel via our Adidas and Reebok brands," Chief Executive Kasper Rorsted said in a statement.

Rorsted was installed to replace long-serving former boss Herbert Hainer - who bought Reebok in 2005 - after activist shareholders took stakes in Adidas, and after several investors called on the company to sell more

Birch Hill will pay most of the purchase price for CCM in cash and the rest in the form of a secured note, Adidas said on Thursday.

The sale will have a high double-digit million euro impact on its profit from discontinued operations in the second quarter but does not change its full-year guidance, said Adidas, which is due to publish quarterly results on Aug. 3.

Robert W. Baird & Co acted as financial advisor to Adidas, and Stikeman Elliott LLP served as lead legal counsel.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Fri, July 28 2017. 04:54 IST