Adidas News

Adidas sells Reebok to Authentic Brands for US$ 2,460 million | ECONOMY

adidas is selling your brand reeboks to Authentic Brands Groups for up to $2.1 billion euros ($2.46 billion), to focus on its core sporting goods brand after the American brand fell short of expectations.

Adidas bought Reebok for $3.8 billion in 2006 to compete with arch-rival Nike, but its slow performance prompted repeated calls from investors to sell the brand.

While, adidas He managed to level Nike’s dominance in the United States with its core brand, helped by partnerships with celebrities like Kanye West, Beyonce and Pharrell Williams.

READ MORE  Adidas will promote online sales and sustainability in a five-year plan | TRENDS

After Kasper Rorsted took over as CEO of adidas in 2016, he launched a restructuring plan for Reebok, which helped it return to profitability, but its performance continued to lag behind parent Adidas brand and was later hit hard by the COVID-19 pandemic.

It has already sold the Rockport, CCM Hockey and Greg Norman brands for 400 million euros, which had been part of the original Reebok acquisition.

READ MORE  Kanye West Jumps From Bankruptcy To Millions With His Yeezy Brand | TRENDS

Authentic Brands Group (ABG) has quickly amassed more than 30 brands that are sold in some 6,000 stores. Its rich portfolio includes those in the media, entertainment, fashion, home, active lifestyle and outdoor sectors.

“This is an important milestone for ABG, and we are committed to preserving the integrity, innovation and values ​​of reeboksincluding its presence in brick-and-mortar stores,” said Jamie Salter, founder, president and CEO of ABG.

READ MORE  Adidas profit falls 83% in 2022 after breaking up with Kanye West | ECONOMY

Adidas said in a statement that the sale has no impact on its financial outlook for the current year or its targets set out in the five-year strategy it announced in March. He assured that the majority of the 2.1 billion euros would be paid in cash at the closing of the transaction, which is expected in the first quarter of 2022.

Related Articles

Back to top button