Adidas has sold sportswear brand Reebok to Authentic Brands Group (ABG) “for a total consideration of up to 2.1 billion euros” with the deal expected to close in the first quarter of 2022.
The German sportswear giant said in a statement that ABG would pay the majority in cash at closing of the transaction and the remainder comprised of deferred and contingent consideration. Adidas adding that it will share the majority of the cash proceeds with its shareholders.
Kasper Rorsted chief executive of Adidas AG said: “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.”
Adidas acquired Reebok in 2006, which at the time included the Rockport, CCM Hockey and Greg Norman brands that the sportswear brand later offloaded. In 2016, Reebok initiated a turnaround plan called ‘Muscle Up’ to significantly improve its growth and profitability prospects, and following an evaluation from Adidas, it confirmed in February 2021 that it would sell Reebok as part of its ongoing efforts to strengthen the Adidas brand globally.
Adidas sells Reebok to Authentic Brands Group
ABG will own and manage the intellectual property of Reebok and plans to “employ its core playbook, connecting strong brands with best-in-class licensees and a network of partners that seek to optimise value in the marketplace”.
Reebok’s world headquarters will remain in Boston and ABG will work closely with Adidas, Reebok’s president Matt O’Toole and the entire Reebok team to transition the brand to ABG’s platform. Reebok’s operations will continue in the US and Canada, Latin America, Asia Pacific, Europe and Russia.
Jamie Salter, founder, chairman and chief executive of ABG, said: “We’ve had our sights set on Reebok for many years, and we’re excited to finally bring this iconic brand into the fold. Reebok not only holds a special place in the minds and hearts of consumers around the world, but the brand also has expansive global distribution.
“Adidas has been an incredible steward of the Reebok brand, and we look forward to working with the Reebok team to continue their great work and further its position as one of the world’s leading consumer brands.”
Reebok currently operates in 80 countries, with approximately 70 percent of its business hailing from outside of the US and Canada, and ABG has stated that its goal is to maintain the brand’s global footprint across retail, wholesale and e-commerce channels.
ABG, a brand development, marketing and entertainment company, recently acquired US outdoor brand Eddie Bauer with retail enterprise SPARC Group and snapped up Barneys New York and Brooks Brothers. Other brands in its portfolio include Juicy Couture, Forever 21, Spyder, Greg Norman, Aéropostale and Volcom.