MOSCOW – German sportswear giant Adidas yesterday announced that it has made a deal to sell the Reebok brand to United States company Authentic Brands Group (ABG) for €2.1 billion (RM10.6 billion).
Back in February, the company started the formal process of selling Reebok, which it acquired in 2006 for roughly US$3.8 billion (RM16 billion), due to the brand’s underperformance on the market.
“Adidas announced (yesterday) that it has entered into a definitive agreement to sell Reebok to ABG for a total consideration of up to €2.1 billion, with the majority to be paid in cash at the closing of the transaction, and the remainder comprising deferred and contingent considerations,” reported the Sputnik news agency, quoting the company’s statement.
The transaction is expected to be closed in the first quarter of next year, with most of the proceeds to be shared with Adidas’ shareholders, said the statement.
“Reebok has been a valued part of Adidas, and we are grateful for the contributions that 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,” said Adidas CEO Kasper Rorsted.
Adidas acquired Reebok as part of an attempt to overtake its main sportswear rival Nike.
Reebok produces both athletic and lifestyle wear, and has created branded apparel for both CrossFit and Ultimate Fighting Championship. – Bernama, August 13, 2021
