Adidas concludes $2.5 billion deal to sell off Reebok brand
Europe’s largest sportswear manufacturer, Adidas has concluded plans to sell off its sneaker and sportswear brand Reebok to Authentic Brands Group for up to $2.5 billion. The closing of the transaction is subject to customary closing conditions and is expected to occur in the first quarter of 2022.
Kasper Rorsted, CEO of adidas AG stated: “Reebok has been a valued part of adidas, and we are grateful for the contributions the brand and the team behind it have made to our company. With this change in ownership, we believe the Reebok brand will be well-positioned for long-term success. As for adidas, we will continue to focus our efforts on executing our “Own the Game” strategy that will enable us to grow in an attractive industry, gain market share, and create sustainable value for all of our stakeholders.”
The German sportswear company Adidas has been looking for a way to spin off or sell Reebok. It bought the Boston-based company in 2006 for $3.8 billion as a way to bulk up its business.
In February, adidas announced the initiation of a formal process to divest Reebok in an effort to focus on further strengthening the leading position of the adidas brand in the global sporting goods market. In March, adidas presented its 2025 “Own the Game” Strategy designed to significantly increase sales and profitability and gain market share by 2025. During the strategy formulation process, the company assessed strategic alternatives for Reebok with a focus on ensuring both adidas and Reebok would be well positioned for sustainable growth.
Jamie Salter, Founder, Chairman and CEO of ABG commented, “It’s an honor to be entrusted with carrying Reebok’s legacy forward. This is an important milestone for ABG, and we are committed to preserving Reebok’s integrity, innovation, and values – including its presence in bricks and mortar. We look forward to working closely with the Reebok team to build on the brand’s success.”
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