Adidas is continuing its push to focus on “core businesses” with the sale of CCM, the world’s most preeminent hockey equipment brand.
Having acquired CCM as part of its acquisition of Reebok, adidas has grown it into the leader in hockey, with Sydney Crosby counted amongst its mega-star sponsees. The decision to sell comes as no surprise as the company had announced its decision to focus on core businesses such as adidas and Reebok in an effort to up its game in the footwear and apparel market, and be better able to compete with Nike. It has already sold TaylorMade, one of the leading gold brands, for roughly $200 million cash in a deal that could reach $450 million based on contractual stipulations, back in 2016.
“Within our long-term strategy ‘Creating the New’, our focus is clearly on our core competencies in footwear and apparel and on our two major brands Adidas and Reebok,” Rorsted said. Adidas stands to gain roughly $100 million for the Ontario-based company and the money is expected to be reinvested into its core businesses. Adidas has been losing ground on Nike and the loss of attention on the core principles of the company have driven it further away from its main competitor, which has been signing clubs like Chelsea and athletes like LeBron James. The renewed focus, as well as a stocked coffer of cash, can be vital in adidas regaining market share and being able to land major sponsorships around the globe.