Reebok to be acquired by Authentic Brands Group
Authentic Brands Group has agreed to acquire the Reebok active and footwear brand from Adidas for a total consideration of up to €2.1 billion.
The transaction is expected to close in the first quarter of 2022, subject to customary closing conditions.
Adidas bought Reebok in 2006 in an acquisition that also included the Rockport, CCM Hockey and Greg Norman brands. Reebok implemented a turnaround plan in 2016 which improved its growth and profitability prospects. However, Adidas announced earlier this year that it had decided to sell the company as part of plans to focus on the Adidas brand.
Adidas will share the majority of the cash proceeds from the sale with its shareholders.
Kasper Rorsted, chief executive 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.”
Reebok currently operates in 80 countries from retail, wholesale and ecommerce channels, with around 70% of its business coming from outside of the US and Canada.
Its headquarters will remain in Boston in the US following the sale and Authentic Brands Group will work closely with Adidas, Reebok’s president Matt O’Toole and the Reebok team on the transition to Authentic Brands Group’s platform. In addition, Reebok will continue to operate in the US and Canada, Latin America, Asia Pacific, Europe and Russia.
Jamie Salter, founder, chairman and chief executive 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.”