German sportswear group Adidas has agreed to sell its CCM ice hockey brand to private equity firm Birch Hill Equity Partners 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 non-core businesses 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 KPS Capital Partners 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 non-core businesses.
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.
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