The Reebok brand will change owners. Adidas, a German sportswear company, has in fact announced its sale to Authentic Brands Group for a sum that could reach 2.1 billion euros (2.47 billion dollars). The deal is expected to be finalized by the first quarter of next year and involves a largely cash transaction upon closing. The price, writes the Wall Street Journal, is significantly higher than estimated by many media and observers. Adidas had announced plans to sell the Anglo-American brand, acquired in 2006 for approximately $ 3.8 billion, earlier this year. The sale, Adidas said, has no impact on the company’s current guidance for the full year of 2021. In February, the German company announced that it would sell Reebok to focus on strengthening the Adidas brand.
“Reebok has been a valuable part of adidas and we are grateful for the contributions the brand and the team behind it have made to our company,” said Kasper Rorsted, CEO of adidas AG. “With this change of ownership – he continued -, we believe that 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 which will allow us to grow in an attractive sector, gain market share and create sustainable value for all of our shareholders ”. Jamie Salter, founder, president and CEO of Abg commented: “It is an honor to be charged with carrying on the legacy of Reebok. This is an important milestone for Abg and we are committed to preserving Reebok’s integrity, innovation and values, including its concrete presence. We look forward to working closely with the Reebok team to build on the success of the brand ». Adidas bought Reebok in 2006. At the time, the acquisition included the Rockport, CCM Hockey and Greg Norman brands, which adidas then divested for a total consideration of € 0.4 billion. In 2016 Reebok initiated a turnaround plan called ‘Muscle Up’ through which the brand was able to significantly improve its growth and profitability prospects.