Adidas Sells Rockport Unit to Berkshire Partners, New Balance

By Neetha Mahadevan 

FRANKFURT--Adidas AG on Friday sold its Rockport unit for EUR280 million ($318.3 million) to a new entity formed by Berkshire Partners and New Balance, in a move that allows the group to focus more on sporting goods but hurts full-year profit.

However, the German company said that full-year net profit, excluding the impact of the deal and a EUR80 million write down on the value of its Russian business, reached its earnings target of around EUR650 million. The company is due to report full-year results on March 5.

Adidas has been looking to sell its Rockport unit, a maker of boat and dress shoes, as it narrows its focus on sporting goods. The sale will hit profit by a double-digit million euros amount, the company said.

"The sale of Rockport will allow us to reduce complexity and pursue our target consumer more aggressively with the adidas, Reebok and TaylorMade brands," Chief Executive Herbert Hainer said in a statement.

Separately, the world's No.2 sports-gear maker said sales, adjusted for currency effects and Rockport sale, increased 6% in 2014. Full-year sales were up 2% to EUR14.8 billion from EUR14.5 billion a year earlier.

Write to Neetha Mahadevan at [e-mail]

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