Sporting apparel company Adidas is developing a new sports apparel company, according to multiple people familiar with the situation.
Adidas is looking at expanding the company’s existing sports apparel business, which includes athletic gear such as sneakers and clothing, to include apparel, the people said, requesting anonymity because the discussions are private.
The company, which is based in Los Angeles, is looking to expand the apparel business beyond the sports realm, said one of the people, who asked not to be identified because the talks are private and were not publicly disclosed.
The companies’ existing apparel business is valued at $50 million, the person said.
The people spoke on condition of anonymity because they were not authorized to speak publicly.
Adidas said in a statement it is “delighted” that the NBA is considering a potential acquisition.
The announcement comes less than a month after the NBA agreed to sell the Los Angeles Lakers, the Los Angles Lakers and the Los Gatos Lakers to the Seattle SuperSonics for $2.3 billion.
The deal includes a $5.8 billion buyout.
Adidas has said it expects to create at least 15 new sports brands, which could include a “new Adidas Originals” and a new Adidas Origines line.
Adidas had a similar relationship with Nike in the 1990s.
Nike is expected to sell about 10% of Adidas Origins, the company said.