Adidas sells under-performing Reebok to Authentic Brands for €2.1bn
Adidas is selling Reebok to Authentic Brands Group for up to €2.1 billion ($2.46 billion) as it exits an investment that never generated the rewards it had hoped for.
It bought the US fitness label for $3.8 billion in 2006 but has been under long-term pressure from investors to sell the brand.
Of the new deal, it said the majority of the sale price will be paid in cash at the closing of the transaction, which is expected in Q1 2022. Adidas said it intends to “share the majority of the cash proceeds to be received upon closing with its shareholders”.
“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,” said group CEO Kasper Rorsted.
Meanwhile ABG’s founder, Chairman and CEO, Jamie Salter, added: “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.”
The original Reebok buy included the Rockport, CCM Hockey and Greg Norman brands, which Adidas later divested for a total consideration of €0.4 billion.
The sale of Reebok “has no impact on Adidas’ financial outlook for the current year or the company’s 2025 financial ambition that was announced as part of its Own the Game strategy in March”, it said.
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