Adidas Formally Announces Sale Of CCM To Birch Hill Equity Partners For $110M

Adidas on Thursday formally announced the sale of hockey brand CCM for $110M to Canada-based private equity firm Birch Hill Equity Partners, a week after it was first reported, according to Josh Kosman of the N.Y. POST. A source said that Adidas is "lending Birch Hill money equal to at least one-third of the purchase price." The source added that the seller financing was "necessary after traditional lenders were not comfortable lending to CCM in a leveraged buyout" since the company "has been losing money." Reebok bought CCM in '04 for nearly $400M, "including debt." Adidas then bought Reebok the following year (N.Y. POST, 7/28). The deal is "expected to close at the end" of Q3 '17. Adidas said that the decision is "in line with its desire to refocus its activities on footwear and sportswear through its Reebok and Adidas brands" (CP, 7/27).