German sportswear manufacturer, Adidas on Thursday announced that it has struck a deal to sell its ice hockey equipment brand to a freshly formed affiliate of Canadian private equity firm Birch Hill Equity Partners for $110 million, the majority of which will be paid in cash with the remainder paid in the form of a secured note.
The transaction, which is subject to customary closing conditions, is expected to be completed during the third quarter of 2017. As a result of the transaction, Adidas has recorded a non-operational negative P&L 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. The company’s continuing operations, however, are not affected by this one-time charge.
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