Adidas announced on Friday that it will be putting its sportswear brand Mitchell & Ness on the market to focus completely on its core brands.

"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 athletes and inspire consumers to live active lives," Herbert Hainer, Adidas Group CEO, said on Friday.

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The second-biggest sportswear brand in the world is reportedly poised to sell the unit to US private equity firm Juggernaut Capital Partners for a low-to-middle double-digit million euro range. The deal, which is subject to customary closing conditions, is anticipated to be finalized in the second quarter this year.

The German company revealed that it will re-invest the money earned from the sale to its "Creating the New" strategy. Meanwhile, Kevin Wulff, former CEO and president of Asics America Group, has reportedly been tapped to help manage Mitchell & Ness as its new owner.

"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 consumers more aggressively with our core brands," Adidas said.

Mitchell & Ness, which is based in Philadelphia, has longstanding licensing agreements across several top professional sports leagues such as the NBA, NHL, MLB and NFL. It also has a number of high-profile collaborations with brands like OVO, Just Don, and Reigning Champ.

TagsAdidas, Stan Smoth, Mitchell & Ness, sportswear