German holding company Adidas has agreed to sell its sports brand Reebok for $2.5 billion.
The buyer is Authentic Brands Group. After the deal is completed, Adidas will focus on its core business.
The history of cooperation between the brands has been around for 15 years: in 2006, Adidas decided to take over the brand to provide itself the opportunity to compete with its main competitor, Nike. The weak financial performance of Reebok often caused disputes among investors, who called to sell the division.
After the deal closes, Reebok Authentic Brands Group will keep its headquarters in Boston and operate in North America, Latin America, Asia-Pacific, Europe, and Russia. Reebok will continue to partner with Adidas during the transition period.
The buyer, an Authentic Brands Group, has combined more than thirty brands in its portfolio over the past eleven years and is represented in 6,000 retail stores worldwide. These include fashion brands Aéropostale and Forever21, as well as Sports Illustrated magazine.
Jamie Salter, the founder, chairman, and CEO of ABG, expressed his excitement about finally joining Reebok, stating that the company’s objective is to uphold Reebok’s integrity, innovation, and core values.
Earlier, the company announced that sales of the Reebok brand in the first half of 2021 rose from 600 to 823 million euros, and net profit was 68 million euros against a loss of 69 million a year earlier. Adidas had previously withdrawn Rockport, CCM Hockey, and Greg Norman from its portfolio, raising a total of about 400 million euros for them.
