July 27, 2017 - 2:24 PM
MONTREAL - German sportswear manufacturer Adidas has announced an agreement to sell its CCM hockey-equipment subsidiary to a Canadian firm for US$110 million.
The multinational said Thursday it will sell CCM to Toronto-based Birch Hill Equity Partners, with the majority of the transaction to be paid in cash.
The deal is expected to close at the end of the third quarter of 2017.
Adidas said the decision is in line with its desire to refocus its activities on footwear and sportswear through its Reebok and Adidas brands.
CCM was purchased at the same time as Jofa and Koho in 2004 by Reebok, which was focused on establishing itself in the hockey market before it was purchased by the German company.
CCM is headquartered in Montreal's St-Laurent borough with manufacturing plants in St-Hyacinthe and St-Jean-sur-Richelieu.
The company employs approximately 580 people in total, including 500 in Canada.
CCM was founded in 1899 under the name Canada Cycle and Motor Company. At that time, it manufactured bicycles and automotive equipment.
In 1905, the company began manufacturing skates using scrap metal from the bicycle and auto parts factory.
The company went bankrupt in 1983, ceasing production of bicycles, but the skates division continued independently under the CCM banner.
News from © The Canadian Press, 2017