Juggernaut Capital will take over the headwear and apparel brand.

The Adidas Group has sold its Mitchell & Ness business to a newly formed entity primarily owned by Juggernaut Capital Partners.

Juggernaut’s new entity will leverage the capabilities of the platform to grow organically and through the acquisition of additional businesses. The transaction, which is subject to custom closing conditions, is expected to close in the second quarter of this year.

Additionally, Adidas will record a one-time positive profit and loss impact at the time of closing. The company will also reinvest the proceeds from the divestment to accelerate initiatives that are part of the company’s “Creating the New” strategic business plan, which is designed to further strengthen the platform for ongoing top- and bottom-line growth.

“Mitchell & Ness is a strong lifestyle brand that is well known for its authentic headwear and apparel craftsmanship. However, our focus is more on performance sport and operating a brand portfolio with a clear agenda to unleash the potential of athletes and inspires consumers to live active lives,” says Herbert Hainer, chief executive officer, the Adidas Group. “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.”