Adidas (ADDYY) said today that it has entered into a definitive agreement to sell its TaylorMade, Adams Golf and Ashworth golf brands to a newly created affiliate of KPS Capital Partners for $425 million.

About half of the $425 million will be paid in cash with the remainder in a combination of a secured note and contingent considerations, the German athletic apparel retailer said. 

The transaction is expected to close in the second half of 2017 and is subject to customary closing conditions.

"TaylorMade is a leading global golf brand with an exceptionally strong market position. We would like to thank all TaylorMade employees for their many contributions to our company and wish them all the best for a successful future under their new ownership. At the same time, we welcome all Adidas Golf employees who will be integrated into our Adidas Heartbeat Sports Business Unit," Adidas CEO Kasper Rorsted said.

Shares of Adidas were lower around 1.5% during early afternoon trading on Wednesday.  

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