Adidas to sell Reebok to Authentic Brands Group in $2.1bn deal
German sportswear manufacturer Adidas has agreed to sell American footwear and clothing brand Reebok to brand management company Authentic Brands Group (ABG) in a deal worth up to €2.1 billion.
Currently, Reebok operates in 80 countries, with nearly 70% of its business coming from outside of the US and Canada.
The footwear and clothing brand was acquired by Adidas in 2006. At that time, the acquisition included the Rockport, Greg Norman, and CCM Hockey brands, which were later sold by Adidas for €400 million.
In March 2021, Adidas unveiled its 2025 “Own the Game” Strategy, which aims to considerably boost sales and profitability and gain market share by the year 2025. Under the strategy formulation process, the German sportswear manufacturer evaluated strategic alternatives for Reebok with a focus to ensure both the brands be well poised for sustainable growth.
After the evaluation, Adidas decided to channelize its efforts on further consolidating the position of its own brand in the global sporting goods market, while launching a formal process in February 2021 to sell Reebok.
Adidas to sell footwear and clothing brand Reebok to Authentic Brands Group in $2.1bn deal. Photo courtesy of Authentic Brands Group.
Kasper Rorsted — CEO of Adidas 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.”
Authentic Brands Group said that it plans to employ its core playbook for Reebok, which is to connect strong brands with best-in-class licensees and a partner network seeking to optimize value in the marketplace.
Reebok’s world headquarters will continue to be in Boston.
Jamie Salter — Founder, Chairman, and CEO of Authentic Brands Group 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.”
The deal, which is subject to regulatory approval and other customary closing conditions, is anticipated to close in Q1 2022.