Adidas to sell US sportswear seller Mitchell & Ness

German sports shoes, clothing and accessories giant Adidas AG today struck a deal to sell US sportswear seller Mitchell & Ness to a newly formed entity primarily owned by US private equity firm Juggernaut Capital Partners.

The move comes less than a month after the Bavaria-based company said that it plans to sell most of its loss-making golf business and focus on its core strength in the athletic footwear and apparel market. (See: Adidas plans to sell most of its loss-making golf business)

Adidas, the largest sportswear manufacturer in Europe and the second-biggest in the world after Nike, did not disclose the financial terms of the deal, but said that the sale will result in a one-time gain in a the low to medium double-digit million euro range.

Adidas also said that it will reinvest the proceeds from the sale into its ''Creating the New'' strategic plan, which would increase turnover and profit.

"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," said, Herbert Hainer, CEO of Adidas.

Philadelphia-based Mitchell & Ness was acquired by Adidas in 2007. It is a global seller of nostalgia headwear and apparel with longstanding licensing agreements with major American sports leagues such as NBA, NHL, MLB and NFL.