Daily Management Review

Adidas sells Reebok for €2.1B


Adidas has signed an agreement with the American company Authentic Brands Group (ABG) to sell its Reebok brand.

The deal will total up to €2.1 billion ($2.5 billion), most of which will be paid in cash and the rest in contingent and deferred consideration. Adidas intends to complete the sale in the first quarter of 2022.

Rumors that Adidas might sell Reebok surfaced as early as last December. And in February, the company confirmed the start of the process of selling its brand.

Adidas acquired Reebok in 2006, paying $3.8 billion for it, but over the years Adidas has never managed to make the brand highly profitable. It wasn't until 2018 that Reebok returned to profitability, and in 2019, sales showed a two percent increase. Last year, the value of this asset was reduced to $1 billion by Adidas.

Authentic Brands Group is a New York-based marketing and brand development company. Since its inception in 2010, ABG has made more than 30 acquisitions of various brands. In July, the company filed for an IPO on the New York Stock Exchange and expects to be valued at $10 billion.

source: cnn.com