PARIS — Looking to focus on bolstering footwear and apparel sales via its Adidas and Reebok brands, Adidas AG on Thursday said it has entered into a definitive agreement to sell its CCM Hockey brand to a newly formed affiliate of Canada’s Birch Hill Equity Partners.
Subject to customary closing conditions, the transaction, valued at $110 million, is expected to be completed during the third quarter of 2017, according to a statement from the German sporting goods firm. Kasper Rorsted, ceo of Adidas AG, said the divestiture of the brand reflects the company’s commitment to its so-called Creating the New strategy.
As a result of the transaction, Adidas said it has recorded a non-operational negative profit and loss impact in the high-double-digit million euro range, which will be reported in discontinued operations as part of the company’s second quarter 2017 results, due to be released on August 3. The company’s continuing operations are not affected by this one-time charge, according to the statement.