German sporting goods giant Adidas announced on Thursday that it will sell its sportswear brand Reebok to Authentic Brands Group for approximately US$2.5 billion. The acquisition is because Reebok’s sales were lower than expected.
Authentic Brands is known for bringing brands back to life, including Brooks Brothers, Aeropostale, Forever 21 and Juicy Couture.
“This is an important milestone for ABG, and we are committed to maintaining Reebok’s integrity, innovation and values-including its presence in physical stores,” ABG Chairman and CEO Jamie Salter said in a statement. Press release.
ABG plans to conduct an IPO for Reebok this summer.
Adidas said the transaction will be completed by the end of the first quarter of 2022. Adidas plans to share most of the profits of the transaction with shareholders.
Reebok was acquired by Adidas for US$3.8 billion in 2006 in an attempt to keep up with its biggest competitor, Nike. But Reebok, which was founded in Bolton, England and became an American company in 1985, struggled behind Adidas and other sportswear competitors.
Adidas eventually sold Reebok brands such as Rockport CCM Hockey and Greg Norman.
“Reebok has always been an important part of Adidas. We thank the brand and the team behind it for their contributions to our company. With the change of ownership, we believe that the Reebok brand will be in a favorable position for long-term success,” Adidas Chief Executive Executive Officer Casper Rost said in a press release.
Suddenly: Adidas will sell Reebok to Authentic Brands Group for 2.1 billion euros (approximately 2.5 billion US dollars), mainly for cash transactions. https://t.co/J7ABNtu832
— Fashion Business (@BoF) August 12, 2021
