Saturday, 24 January 2015

Adidas Sells Rockport Footwear Brand For $280 Million

On Friday, Adidas announced it's going to sell the Rockport shoe business to a new entity formed jointly by private equity firm Berkshire Partners LLC and New Balance. According to WWD, they are acquiring the business for $280 million in a mostly cash deal.

Rockport will become part of a new company, which will also include New Balance's Drydock business, in addition to the Aravon, Dunham and Cobb Hill brands.

"Our focus is clearly on sport and operating a brand portfolio with a clear agenda to unleash the potential of athletes and inspire consumers to live active lives. The brown shoe category is not core to this strategy," Herbert Hainer, chief executive officer of Adidas, told WWD.
Back in May, the athleticwear powerhouse announced it was entertaining offers for the comfort brand.

Adidas also confirmed that it reached reduced sales and profit targets for 2014, sending its shares up as much as 4.5 percent, according to Bloomberg.
The publication also reported that attention is likely to focus on whether Adidas may seek to sell Reebok, which it acquired in 2006. Last year, a Hong Kong-based private-equity investor was reportedly preparing an offer for the brand.

Back in November, Adidas launched a highly anticipated collaborative collection with London-based designer Mary Katrantzou, who is is notorious for utilizing bright colors, patterns and textures on the runway.

The line was designed with a customer in mind who "enjoys life and has fun with clothes," Katrantzou shared on her website.
"Age was not important, and we wanted the footwear to be for both men and women," she added.

Adidas has partnered with many big names in the past, like Yohji Yamamoto, Raf Simons, Rick Owens, Stella McCartney, Topshop and, most recently, Pharrell Williams.
http://www.fashiontimes.com/articles/17933/20150123/adidas-sells-rockport-footwear-brand-280-million.htm

 
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